Amazing Facts About CERSAI Charges On Home Loan 

July 21, 2022 . Home loans . 10 min read

In today’s real estate market, where properties may cost anywhere from a few lakhs to crores of rupees, a home loan is an extremely desirable kind of financial assistance for anybody who is considering purchasing a residential property. The amount of the loan is often 80% of the property’s current market value when obtained from financial institutions in India, such as banks and home finance firms. This means that a buyer may put down as little as twenty percent of the purchasing price on a house. The loan might have a term of 10 to 25 years, allowing the borrower to arrange their payments according to their financial capabilities. Unfortunately, not everything is usually that transparent. A few individuals have taken out several other loans for a residential unit by contacting a variety of financial institutions. This practice is not just against the law, but it also places every lender engaged in the transaction in a vulnerable position. This is where CERSAI steps in to help. 

What is CERSAI?  

Investors in real estate, as well as lenders, have their interests safeguarded by CERSAI, which was established under Section 8 of the Companies Act, 2013. CERSAI is the acronym for Central Registry of Securitisation Asset Reconstruction and Security Interest. 

The Indian government, which owns a 51 percent holding, together with India’s Public Sector Banks and the National Housing Bank, are the principal stakeholders in CERSAI. It encourages more openness in the dealings of real estate transactions. 

It is the goal of this online registration to keep track of all of the equitable mortgages secured by real estate in one place. It also stores lender and borrower information for each property. That’s why each bank that receives a home loan application runs it via CERSAI first to make sure the property hasn’t previously been mortgaged by another party. 

Charges Applied By CERSAI 

Within a period of thirty days after the closing of a contract, it is mandatory for every financial institution to register the particulars of every newly-mortgaged property, regardless of the kind of loan. Evidently, this method incurs some costs, but they are negligible: Rs 50 for all residential mortgages with a balance of less than Rs. 5 lakhs and Rs 100 for housing loans with a balance of more than Rs. 5 lakhs. 

Principal Aims of CERSAI 

Due to an inefficient registration process, a property’s ownership and lending status depended on the good faith and diligence of the debtor and the creditor before CERSAI was established. CERSAI was thus established with the purpose of: 

  • Assisting the lending institutions in maintaining a heightened awareness of the current standing of a property’s existing liabilities. 
  • Keeping a centralised register of mortgages that are in good standing. 
  • Recognising and monitoring any deceptive practices that may be associated with financing over equitable loans. This will discourage individuals from taking out too much borrowing from a variety of lending institutions on a single property. 
  • Protecting potential purchasers from being victimised by bogus sales, which occur when householders attempt to make an unethical sale of property while still having outstanding debts linked to it. 
  • Making it possible for banking institutions, mortgage companies, and non-bank finance houses to record any transactions that involve the reconstruction or repossession of assets. 
  • Registering mortgages and security interests on intangible assets like book debt in India. 

Access to the CERSAI 

Any person, bank, or finance company may use the CERSAI registration platform for a modest cost to guarantee outstanding accountability and to safeguard all parties involved from any illegal transactions. 

It is the responsibility of a lender to check the property records before approving a loan to a consumer to make sure that a previous lender has not developed a security interest in the property. 

Additionally, prospective property buyers may utilise the site to find out whether a house they’re considering purchasing is clear of any debts or loans from previous owners. 

How to Register for it? 

One may easily register with CERSAI using the organisation’s official website, which makes the process quite straightforward. After you have found your way to the website, proceed with the following steps: 

  • Completion of the “Entity Registration” section’s online registration form is required. 
  • You will need to fill out your personal details and digitally sign the form using their Digital Signature Certificate 
  • Then, print out the forms and sign them. 
  • Finally, forward the completed and signed paperwork to CERSAI’s address. 


CERSAI has become a vital tool for lending institutions as well as legitimate property investors who want to guarantee that the house they’re purchasing or indebting is clear from any past debts or irregularities. Before making an offer on the house, be sure to do a CERSAI check on the property to get all the pertinent information on prior borrowers and lenders. 

CERSAI is now at your fingertips; you should carefully consider your options when purchasing your next house. HomeCapital can help you make the first move toward becoming a homeowner with interest-free down payment loans.  

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