The Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) is a government-backed financial infrastructure system designed to prevent fraud in property-backed loans and ensure transparency in India’s lending ecosystem.
Below is a simplified yet SEO-optimized guide to help you understand what CERSAI is, how it works, why it is important, and how homebuyers and lenders can use it.
Key Information About CERSAI
- Type: Public Sector
- Headquarters: New Delhi
- Industry: Financial Infrastructure
- Founded: March 11, 2011
- Area Served: India
- Product: Online Security Interest Registry
- Owners: Government of India, National Housing Bank & others
What Is the Purpose of CERSAI?
CERSAI was created under the SARFAESI Act, 2002 to maintain a centralized registry of:
- Securitisation transactions
- Asset reconstruction records
- Security interests created over properties
- Mortgages and collateral details
Before CERSAI existed, identifying if a property was already mortgaged was extremely difficult. Fraudulent multiple-mortgage cases were common, causing huge financial losses for buyers and lenders.
Why Is CERSAI Important?
1. Centralized Collateral Registry
CERSAI provides complete information about a property used as security. It includes:
- Borrower details
- Lender’s name
- Type of mortgage created
2. Helps Banks Prevent Fraud
Banks and NBFCs can verify instantly whether a property is already pledged as collateral elsewhere.
3. Assists Homebuyers
Homebuyers can check if the property they intend to purchase is:
- Free of loans
- Not under legal dispute
- Not used as collateral previously
This protects buyers from hidden liabilities and legal troubles.
CERSAI and Regulatory Expansion
CERSAI’s scope has expanded over the years:
2012 – After the Factoring Act
It started registering security interests created on factoring and receivables.
2016 – Movable & Intangible Assets
CERSAI began registration of:
- Book debts
- Hypothecation
- Accounts receivable
- All types of mortgages
Today, CERSAI is responsible for recording all mortgage types across India.
Why Was CERSAI Needed?
Before CERSAI, buyers and banks faced serious challenges:
- No reliable system to check property liabilities
- Encumbrances were hidden by sellers
- Fraudulent multi-mortgage cases
- Fragmented and inaccessible records
CERSAI solved this by making property-linked loan information transparent, centralized, and accessible.
How CERSAI Helps Homebuyers
Thanks to CERSAI, homebuyers can:
- Check if the property is under mortgage
- Identify any existing loans
- Avoid fraudulent real estate deals
- Reduce legal risks and future disputes
This has become even more effective after RERA (2016), giving buyers stronger legal protection.
CERSAI Registration Fees
The registration fee for security interests typically ranges between:
- ₹50 to ₹100
The actual fee depends on:
- Loan amount
- Type of security interest
- Category of registration
How Does CERSAI Search Work?
You can perform a CERSAI Search on the portal to check a property’s mortgage status.
Search Options Available:
- Asset-Based Search
- Debtor-Based Search
- AOR-Based Search (Assignment of Receivables)
Steps to Perform a CERSAI Search:
- Go to the CERSAI website.
- Click the Public Search option.
- Enter details (property, borrower, or asset number).
- View all registered security interests instantly.
What Is the Threshold Warning Limit in CERSAI?
Entities using CERSAI set a minimum balance threshold in their account.
If the balance drops below the limit:
- The system gives an automatic warning
- Transactions continue until the balance becomes zero
CERSAI Registration Process: Step-by-Step
Registering with CERSAI is simple:
- Visit the official CERSAI website.
- Click on Entity Registration in the header menu.
- Fill out the online form with required details.
- Ensure you have a CKYCRR or valid e-signature.
- Print the completed form and get it signed by the authorized signatory.
- Send the signed documents to the CERSAI office along with the required proofs.
Once verified, the entity is approved and given access to the registry.
Legal Stand: Mortgage Priority
According to the Bombay High Court, under the SARFAESI Act and the RDDB Act, secured creditors (banks) have priority over tax and revenue authorities when enforcing a security interest.
This makes CERSAI essential in legal property-related matters.
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