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What is CERSAI?

Understanding what CERSAI is and where there are charges is important for anyone looking to avail a home loan. This guide aims to demystify CERSAI, how to access CERSAI, charges for registration and highlighting their significance in the home loan process.
What is the full form of CERSAI and the reason for establishing?
CERSAI also known as Central Registry of Securitisation Asset Reconstruction and Security Interest of India. CERSAI has been established as a company under section 8 of the Companies Act, 2013 by the Government of India. CERSAI’s meaning and primary purpose is to create a comprehensive registry for the security interests in assets, particularly focusing on mortgages and loans. By maintaining a central repository, CERSAI enhances the transparency and reliability of property transactions. In other words, CERSAI was established to discourage and prevent the practice of taking out various loans from several lending institutions using the same asset or property.
Who owns CERSAI?
Major shareholders of the CERSAI are the Central Government of India, National Housing Bank and public sector banks, out of which the central government incidentally holds a 51% share in the company. Before the setting up of Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), a property’s encumbrance details rested solely with the borrower and the lender.
Importance of CERSAI in the Home Loan Process
CERSAI plays a crucial role in the home loan process by protecting all parties involved. For lenders, it reduces the risk of default and fraud, while borrowers benefit from increased security regarding their property ownership. By ensuring that all mortgages are registered, CERSAI fosters a trustworthy environment for real estate transactions.
Before CERSAI, there was a disjointed system of registration that was in place at the time. Due to this, persons would take out various loans from several lending institutions using the same asset or property. These loans from lending institutions were obtained using counterfeit title deeds or through other doubtful means of replicating of the original title deed. Unfortunately, for genuine buyers, these assets or properties were then sold with unpaid loans still attached to them. It ultimately landed the potential buyers in a soup due to the lack of information about the existing liability of the property / asset.
Registration
  • The Registration with CERSAI can be initiated on the official website of CERSAI at https://cersai.org.in/
  • The person seeking for registration will be required to fill out the registration form electronically available under the ‘Entity Registration’ option on the CERSAI website.
  • The user must possess a Digital Signature Certificate (DSC) to gain access to the CERSAI portal and to fill out the relevant details.
  • Once all the information required for the registration has been filled in, the same is required to be printed and signed by the authorised signatory.
  • These printed forms, along with all relevant documents as mentioned in the forms are to be sent to the official address of CERSAI.
Accessibility
Any bank, financial institution or an individual can access the registration platform of CERSAI for a certain fee. By registering themselves with CERSAI, the lenders can pull up the information on an asset or property to validate that whether any previous security interest has been created by a different lender (banks, financial institutions etc.) in the past.
Usually, this is done before the sanction of a loan to a borrower. This is exceptionally beneficial for the genuine buyers of the property, as CERSAI permits them to pull up all the relevant information from the registry to check whether the property in which they are interested in free of any liability that may have been created by another lender.
The access is also available to General Public, who can undertake an online search in the Central Register on payment of prescribed fee in the following ways:
1) Asset based search for Movable, Immovable and Intangible properties based on asset details: https://cersai.org.in/CERSAI/asstsrch.prg
2) Borrower based search based on their PAN or Name with additional information like Date of Birth and CKYC number: https://cersai.org.in/CERSAI/dbtrsrch.prg
What are CERSAI charges?
CERSAI charges refer to the fees associated with registering a loan against a property. These charges are essential for the formal recognition of the mortgage in the CERSAI registration, ensuring that the lender’s interest is legally protected. Essentially, these charges facilitate the safeguarding of both lender and borrower rights.
The calculation of CERSAI charges can vary based on several factors. The primary determinants include the total loan amount, the nature of the property, home loan interest rates, and the specific lending institution’s policies. Typically, larger loans attract higher registration fees due to the increased risk involved. These charges are typically non-refundable.
Breakdown of CERSAI Charges
Understanding the specifics of CERSAI charges can help borrowers plan their finances efficiently. The charges generally comprise –
Registration fee: a percentage of the loan amount, and
Administrative fees charged by the lender.
Borrowers must inquire about any additional charges that might apply.
When are CERSAI charges paid?
CERSAI charges are typically paid at the time of loan disbursement. This payment is crucial as it allows for the official registration of the mortgage in the CERSAI system. Borrowers should be aware that these charges are generally one-time fees, but it’s advisable to confirm with the lender to avoid any surprises.
CERSAI Charges vs. Other Loan Fees: Comparison
When assessing CERSAI charges, you should compare them with other common home loan costs, such as processing fees and legal charges. While CERSAI fees are necessary for registration, they should be weighed against the total cost of borrowing to ensure a comprehensive understanding of financial obligations.

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