Procedure of Noting And Termination of Vehicle Hypothecation

1. Termination of hypothecation (HP) from RC after repayment of loan is vital as transfer of ownership is not possible without removal of HP
2.  HP termination helps you obtaining your vehicle insurance claim, as it gets transferred to the bank if not terminated

Cancellation of RTO Hypothecation Online

The procedure that must be followed to cancel the hypothecation by visiting the nearest RTO is mentioned below:

Step 1 - Gather the relevant documents such as Form 35 and NOC. Visit the nearest RTO and submit the NOC.

Step 2 - Along with the relevant documents, the application form for the removal of hypothecation must be submitted. The hypothecation fee must be paid as well. The documents will be verified.

Step 3 - Next, the acceptance form must be collected. Ensure all details are correct on the acceptance form.

Step 4 - Next, you will need to submit the acceptance form and the relevant documents.

Step 5 - Next, you will need to submit the acceptance form and the relevant documents.

Documents Required for Vehicle Hypothecation

It is important to include the vehicle purchasing process (if purchased on loan) in the vehicle registration certificate. Below are the documents that are required for the approval

• Original Registration certificate
• Two copies of duly filled Form 34 required for endorsement of Hypothecation
• Copy of valid vehicle insurance that is attested
• Registered owner's attested copy of address proof
• Valid pollution attested copy under control certificate
• Prescribed fee
• Attested copy of PAN Card or Form 60 & Form 61 (depending on applicability)

Cancellation of Vehicle Hypothecation

Documents from the Lender - Once the vehicle loan is closed, the lender will give a few necessary documents such as NOC and copies of Form 35 to confirm their approval over hypothecation in writing. The validity of the NOC is three months from the issuance date. Before its expiry, an application along with the NOC should be submitted to the Regional Transport office.

Documents to be Taken to the RTO

The following documents should be submitted to the RTO:

1. Original Form 35 along with two copies signed by the registered owner and the bank
2. Original NOC issued by the bank
3. Attested copy of PAN Card
4. A Valid copy of attested car insurance
5. Original Registration Certificate
6. A Copy of attested address proof
7. Copy of valid attested PUC Certificate
8. It is also necessary to take a No Dues Certificate from the insurance company.

Submitting Hypothecation Removal Application

An application to remove hypothecation along with the following documents should be submitted to the RTO:

1. Original Vehicle RC
2. Copy of driving license
3. PUC certificate copy
4. Two self-signed Form 35 copies
5. Copy of insurance policy
6. RTO copy of NOC

Once these documents are verified by concerned officers of RTO, a nominal fee has to be paid. Then the next date of your visit will be assigned.

The Process to Receive RC Smart Card

On the specified date, you have to visit the RTO to collect the Acceptance Form with RC details from the concerned person. You can make the required changes to the form, if applicable.

Against a nominal fee, you can apply for a Smart Card RC that can be collected from the RTO within a few days of payment. This will ensure you the rightful ownership of the vehicle. Here are the detail steps to receive the RC smart card:

Step 1 - Visit the RTO

Step 2 - Acceptance Form with all details mentioned, will be provided by the officer who verified the documents

Step 3 - Make the required corrections in the form

Step 4 - Submit the acceptance form along with the documents after verification at the counter

Step 5 - Make the payment for new RC card

Step 6 - On making payment, RTO will provide the receipt mentioning the date of issue of new RC Smart Card 

Step 7 - On the mentioned date, visit the RTO to obtain the RC Smart Card

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