RC Update: If you’ve fully repaid your car loan and the bank or financier’s name is still listed on your vehicle’s RC, there’s no need to worry. The government has provided significant relief to vehicle owners by making the hypothecation removal process online.
Add informalnewz.com as a Preferred Source
RC Update: If you’ve fully repaid your car loan and the bank or financier’s name is still listed on your vehicle’s RC (Registration Certificate), there’s no need to worry. The government has provided significant relief to vehicle owners by making the process of hypothecation termination (deleting the loan entry) online. You can now do this from home using your mobile or laptop, without having to visit the RTO.
In fact, when someone purchases a car on loan, a hypothecation clause is added to the RC. This indicates that the vehicle is mortgaged to the bank or financier. However, if this entry isn’t removed even after the loan is repaid, the bank retains ownership of the vehicle in government records. This can create difficulties when selling, transferring, or re-registering the vehicle.
Hypothecation entries can now be removed online.
The facility to remove hypothecation entries is now available online through the Ministry of Transport’s official website, VAHAN (vahan.parivahan.gov.in). In many states, the entire process is digital, while in others, after filing Form 35 online, a hard copy may need to be submitted to the RTO and the lending institution.
What documents are required?
To remove the hypothecation online, you will need to upload the following essential documents:
- No Objection Certificate (NOC) from the bank or financier
- RTO Form 35
- Valid Insurance Certificate
- Original Vehicle Registration Certificate
Step-by-Step Process
- Login to the VAHAN website
- Go to “Online Services” and select “Vehicle Related Services.”
- Enter the registration number and chassis number and generate an OTP.
- After entering the OTP, select “Hypothecation Termination.”
- Fill in the insurance details and upload the required documents.
- Pay the prescribed fees online.
Why is it important to remove the hypothecation?
If you want to sell your car, transfer ownership, or simply keep your RC clean, removing the hypothecation is crucial. This makes it clear that no bank or financier has any claim on the vehicle.
Read More: CBDT Chairman gives big update on old tax regime, here’s what he said
