Two home loans on one property

Gone are the days – applying for a home loan again and again on the same property even when you are in home loan already with the property. Central Registry, a Government Company by the Public Sector Banks and National Housing Bank, formed in 2011, closed all the ways to take loan from multiple banks on the same property.

Once the loan is sanctioned by the nationalized banks, central registry has all the respective details. So, if an individual applies for the loan on the same property again, it is impossible to avail such loan. One can apply for a balance transfer but cannot avail two home loans on same property.

CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India), came into effect from March 31, 2011.

It is mandatory that all the banks register in the central registry, the mortgage within a month it is offered.

What CERSAI Does

* Maintains a central registry of property on which loans have been availed.

* Develops a web-based system for financial institutions and general public to access the information on mortgaged property.

* Collects and decimates information regarding the amount secured by the charge on the collateral.

* Maintains history of charges created and satisfied on a particular property.

* Enables lenders to get real-time current information regarding the security offered by the borrower.

* Provides potential buyers information about any encumbrance on the property they intend to buy.

* Prevents fraudulent transactions arising out of the same asset being mortgaged to multiple lenders

How Does CERSAI Help The Individual :

Not only the banks, but also the public can access by filling a form. One can get to know if their suggested property is already in loan by paying a minimal fee.

CERSAI reduces the fraud practices such as forging the documents for getting a loan, getting two home loans on the same property, etc.

One can always check if the property has been registered and if it is under a loan

But one cannot take into account properties on which loan has been borrowed from a non-banking finance company. This will again limit the registry’s ambit.

How Loanyantra Works :

Loanyantra, first online home loan management company, manages your home loan from the time you start your home loan search. We help you to know if your property is eligible for home loan and get you home loan from your favorite bank.

 

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