Removing hypothecation from a vehicle’s Registration Certificate (RC) is a crucial step for vehicle owners seeking to establish full ownership of their assets. The process has evolved with technological advancements, allowing individuals to initiate and complete the hypothecation removal online. This article provides a detailed, step-by-step guide on how to remove hypothecation from RC, ensuring a hassle-free experience for vehicle owners in India.
Table of Contents
What Is Hypothecation of Vehicle
Before delving into the online process on removal of hypothecation on rc, it’s essential to understand what hypothecation is. Hypothecation is the act of pledging a vehicle as collateral for a loan. When a financial institution provides a loan for a vehicle, the details of the loan are endorsed on the vehicle’s RC as a hypothecation. Removing hypothecation means eliminating this endorsement, indicating that the loan has been repaid, and the vehicle is entirely owned by the borrower.
Documents Required for Hypothecation Removal
| No Objection Certificate by Bank (NOC) | PUC Certificate |
| Form 35 (Signed & Stamped by Bank) | Insurance Certificate |
| Registration Certificate (RC) |
No Objection Certificate (NOC): One of the primary requirements for hypothecation removal is obtaining a No Objection Certificate (NOC) from the financing institution. This document confirms that the borrower has repaid the loan, and the financial institution has no objection to removing the hypothecation from the RC.
Form 35 – Hypothecation Cancellation Form: To initiate the online process, obtain Form 35, which is the Hypothecation Cancellation Form. This form acts as a formal request for the removal of hypothecation from the RC. You can typically find this form on the official website of the Regional Transport Office (RTO) or acquire it from the RTO office.
Once the loan is completely cleared, the bank often includes a prefilled and stamped Form 35 in the NOC package. This prefilled form, provided by the bank, contains accurate details and is a crucial component for the hypothecation removal process. If you have received this Form 35 from the bank, it is a convenient option for submission directly to the RTO.
PUC Certificate: Obtain your Vehicle PUC Certificate effortlessly by visiting nearby PUC Centers. This certificate, once issued, remains valid for one year, ensuring compliance with environmental standards.
Insurance Certificate: Vehicle Third Party and Own Damage Insurance Documents.
Registration Certificate (RC): Existing Registration Certificate (RC) of Vehicle will be needed.
Remove Hypothecation from RC Online
For HP Termination or in simple words to remove financer name from rc, make sure you have arranged all the above documents required for hypothecation removal. Without these documents you won’t be allowed to place request to terminate vehicle hypothecation.
Visit the Official RTO Website https://parivahan.gov.in/
From the Paivahan Sewa Website, under Online Services tab click on the Vehicle Related Services
On the next screen you will need to make selection of your State and it will redirect to the State Vahan Citizen Services Page
From Choose option to avail Services section, Select the RTO from the list where you have your vehicle registered
Tick mark on the I accept to have read the Privacy Policy and Terms of Service for processing of my personal data into the system and click on the Proceed button
A pop-up will appear, click on the Proceed button to continue
On next page various Online Services will be listed, from which you need to click on the Hypothecation Termination
Online Application(Hypothecation Termination) page will open, where in you need to enter your vehicle registration number and last 5 characters of vehicle chassis number (vehicle chassis number will be mentioned your vehicle rc book)
Once filling up these details click on the Verify Details
It will ask you to authentication yourself using mobile OTP or Aadhaar, select whichever is feasible for you
On next page, your last four digits of registered mobile number will be displayed, below that Generate OTP will be there. Click on Generate OTP and a one time password will be sent on your registered mobile number
A pop with appear Alearting OTR has been generated and sent to registered mobile no XXXXXX1234 with reference number XXX
Close the alert popup, enter the OTP and click on the Submit button
Next page will be of Application Entry Form AKA Online RC Hypothecation Removal Form, from here you need to tick mark on the Termination of Hypothecation
One tick marking the Termination of Hypothecation field, Hypothecation Termination Details section will expand
Scroll down the page, under hypothecation details the details of financer will be mentioned click on the Terminate button appearing against the details under action column
A po-up will appear, where you need to select the date of your loan closure (do check your loan NOC documents to find out this date)
Once making selection of the date, click on the Save button
A confirmation will appear asking, Do you want to Terminate? Click Yes to proceed
The Hypothecation details which you have selected to terminate will appear in the section of Hypothecation Termination Details Section, if you need to do any changes in the loan closure date then you can do it by clicking on the Edit button appearing against it.
At the bottom of the page there will be a Fee Panel, where the fees to be paid by you as a processing fee and smart card fee will be mention.
Click on the Pay Now button to proceed paying the fee, to pay the fees you will need a online mode of payment such as UPI, Credit Card, Debit Card or Internet Banking Services.
A pop-up will appear fee collection details stating “Kindly ensure that the information here is correct, once moved forward you won’t be able to correct it. Incase incorrect application is submitted then only provision is there to withdraw the application and submit new application. In this case all the fee submitted for same will be forfeited.” and below the hypothecation termination details will appear.
Tick mark on the I have read the instructions and checked the information carefully and click on the Confirm Details
It will take you to the Payment Gateway Page, select the payment gateway form the list as ECHALLAN , tick mark on I accept terms and conditions and click on the continue button
On next screen eChallan Payment Gateway will be presented, solve the Captcha Security Code and select your payment gateway from the list and click on the Initiate Payment
From next screen select the mode with which you would like to pay such as Net Banking, Card Payments or UPI and make the payment
Once making the payment for Parivahan Hypothecation Removal, the e-Receipt, will be generated. You can click on the Print button or Click on download e-Receipt and download the PDF of Payment receipt. You need to store is on your device carefully as it will be needed for further processing the application
Sometimes, once the payment is made the page may redirect directly to the homepage of RTO instead continuing with Parivahan Hypothecation Removal
In such case to further process your application do as follows:
Visit the PariVahan website https://parivahan.gov.in/
Under Online Services click on Vehicle Related Services
From next page, select your state
This will direct to Vahan Citizen Services page, from this page under Status tab click on the Know your application status
In the Know your application status page, enter your Application number which you recently submitted and made payment or enter your Vehicle registration number by selecting the applicable fields
Once entering those details, solve the Captcha security code and click on the Submit button
On next screen the application status will be displayed, as we are done with the payment
The next process which will need to do is the document upload, under the status hypothecation termination transaction purpose in current status you will get to see Document Upload Pending at Online Service click here
Click on the click here link to proceed with the document upload
Upload Pending Document page will load, where in you need to fill up your vehicle registration number, last five characters of chassis number, application number and click on the Verify button
On clicking verify, your last four digits of registered mobile number will be displayed under RMN (Registered mobile number) of vehicle owner/ entered mobile number of vehicle owner
Click on the Generate OTP button
A popup will appear stating OTP has been generated and sent to registered mobile number XXXXXX234 with reference number XX
Close the popup message
Enter the received OTP in the enter OTP field and click on the Submit button
Navigate to the official website of the RTO that issued your vehicle’s RC. Look for the online services section or a specific portal for hypothecation removal.
On next screen Owner information will be loaded such as Owner Name, Son/ Wife/ Daughter of, application date and applied application hypothecation termination
From the bottom of the owner information click on the Upload Documents
A disclaimer pop up will appear stating “I declare that I am registered owner/ license owner and details provided is best of my knowledge. I am aware that providing false information or uploading forged document is an offense under respective legal provision. I hereby state that I have no objection and providing consent in uploading Aadhaar Card (hide the aadhaar number before uploading). I understand that the Transport Department shall ensure security and confidentiality of my personal identity data provided for the purpose of Aadhaar Card as one of document”
Tick mark on the accept to terms and conditions and click on the OK button
On next page you will be asked to upload the documents, make sure you have scanned and stored all the documents required on your device such as Bank NOC, Filled Form 35 Signed and Stamped by Bank and Signed by the owner, Insurance Policy Certificate, PUC Certificate, Registration Certificate
All these documents are mandatory to be uploaded, click on choose button and select the respective scanned file from your device
Depending on filed size it will take several minutes to load up the file, once the file name appears click on the upload button and file is successfully uploaded message will popup
You will need to repeat the same process to upload all these documents one by one
Once the document is uploaded under view document section an eye will display against all the document columns
After uploading all the documents, click on the Proceed Further
You have successfully submitted the application for hypothecation removal
Next you will need to visit the RTO Office with the payment receipt, and enclose all the documents such as Bank NOC, Filled Form 35 Signed and Stamped by Bank and Signed by the owner, Insurance Policy Certificate, PUC Certificate, Registration Certificate (Original)
Submit these documents at the hypothecation counter
The concerned authority will ensure that all submitted documents are authentic and accurate to avoid delays. After verification hypothecation cancellation request will put for further processing
The new Registration Certificate without hypothecation will be delivered to your registered address within 2 – 3 weeks.
You can check the status of your application online.
The online process for hypothecation removal from RC is standardized and consistent across all states in India.
Removing hypothecation from RC online streamlines the process, offering convenience to vehicle owners. By following the outlined steps and ensuring all documents are in order, individuals can successfully navigate the RTO hypothecation removal process, gaining full ownership of their vehicles. Stay informed about any updates or changes in the procedure by regularly checking the official RTO website for the latest information.
The hypothecation removal from rc fees may vary from state to state. In few states Hypothecation Termination is non-chargeable service. But you may need to pay the RC Smart Card Reissuance fees plus the processing charges.
The above process for the removal of hypothecation from RC is applicable for all type of vehicles such as two wheelers, four wheelers, auto rickshaw, trucks, buses, tempo, etc.
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