: CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) was established to curb fraudulent activities in lending transactions against equitable mortgages. Licensed by the GoI under the Companies Act, 2013 (Section 8), CERSAI was created to detect and distinguish deceptive lending practices from fair housing loans.
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In simple terms, this company was created to prevent the practice of availing several loans from various banks using the same property or asset.
Let’s understand this using an example:
Let’s assume that Samiksha avails loans from banks – X, Y, and Z, and what Samiksha uses as a source of guarantee is the same house for every bank.
Before CERSAI, proper registration of transactions of properties didn’t happen. Every legal paperwork remained just between the borrower/buyer and lender. This led to several fraudulent schemes –selling a house with unpaid loans attached to it, fabrication of the original deed, etc.
This registration system has become much handier and safer to work with, all thanks to the CERSAI verification.
Now you know what is CERSAI.
Some Main Objectives:To deal with fraudulent and suspicious activities, the main objective to establish CERSAI is to maintain a centralised registry of equitable and fair mortgages.
The CERSAI registration form includes every relevant detail about mortgages or loans of properties or goods. Plus, it also includes every relevant detail about the lender or bank that approved the real estate loan, as well as the borrower’s details.
Enables financial institutions and banks to record all transactions related to the reconstruction and securitization of assets.
Read more:
What is CERSAI charges?
What is mortgage loan?
What is reverse mortgage loan?
How to calculate mortgage loan eligibility?
I hope now you have a complete understanding of the CERSAI meaning.
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What is cersai?
Goruk
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2022-04-08T12:37:35+00:00 2022-04-11T18:16:51+00:00Comment
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