Many car buyers purchase a new car after availing finance from their bank. All vehicles that have been financed come with a ‘Finance Company Hypothecation’ can be removed from the registration certificate once the loan has been paid off. Here’s a guide to remove Hypothecation from RC.
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Mostly, a car owner starts looking for a reliable ‘agent’ to get any RTO-related work done. However, most of the official procedures have got a lot simpler in recent times, thereby mitigating the need for hiring these agents. Based on your car’s registration, visit the relevant RTO (for example, cars with HR-26 registration need to visit the Gurgaon RTO). That said, the procedure remains largely similar at all the RTOs across the country. Here are the steps to follow to remove Hypothecation from RC –
Once you have paid off the loan, your bank or the financial institution will provide you with a letter stating closure of the loan with the official letterhead. You’ll require to provide the NOC to the RTO. Furthermore, you need to have two copies of Form 35. Finally, please note that the NOC is mostly valid for only 90 days and hence, you must submit your application to the RTO days before the document expires. Also, it’s a good idea to carry some extra copies of all these documents.
Once you’ve obtained the required documents, visit the relevant RTO. You’ll see several counters with clearly marked numbers on them. Approach an officer and ask him about the counter you need to visit. Once you’re at the concerned counter, it’s a pretty straight-forward procedure.
Here are the documents you need to submit to the RTO –
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Staple all the documents together and proceed with the following steps to get the Hypothecation removed from RC.
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Once documents are summited to the RTO, the vehicle owner can have a real-time update about the status of the progress of hypothecation termination at the RTO through his application number or registration number by visiting- https://vahan.parivahan.gov.in/vahanservice/vahan/ui/appl_status/form_appl_regn_status.xhtml
On your next visit to the RTO, you need to go to the counter where you submitted your documents. The officer will return your documents along with an ‘’Acceptance Form’’, which has all the details that are mentioned on your vehicle’s registration certificate. You need to go through the form and check if any of the data needs to be corrected. In case of an error, you need to tell the officer about, who will make the required corrections to the RTO’s computer system immediately.
Next, you will need to sign the acceptance form and hand it back to the officer. After this, he will ask you to visit another counter, where you need to pay the fee for the new smart card. After the payment, you will be given a receipt and a date to collect the Smart Card RC. Visit the RTO again on the allotted date to collect the registration certificate.
Payments can be now also made online by visiting – https://parivahan.gov.in –> Online Services –> Vehicle Related Services –> Enter your vehicle number –> Choose your service –> Misc. You will have to provide the concerned officer with the online payment receipt on your visit to the RTO.
As can be figured out from the steps above, the procedure to remove HP from RC is quite easy and can be completed in a few easy steps. However, in case you are pressed for time, hiring a reliable agent isn’t a bad idea.
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