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How To Remove Hypothecation From RC After Paying Vehicle Loan?


Nowadays getting a bike or car is like a fashion, everyone wants one for him and getting these vehicle’s become more easy as bank can provide loan to you and then you can get a vehicle for yourself.

But if you get a vehicle on loan then you will find that on RC aka Registration Certificate Owner’s name will be of your bank or Financial Institution not your as due to loan term they are the owner not you. Unless you pay full loan you cant transfer RC to your own name.

On RC, name of Hypothecation will be mentioned as your bank name which can be changed only when you pay full loan of your bank or financial institution.

But once you had paid full loan amount then you can approach RTO to get RC transfer to your own name, to do this you will need some documents which are listed below:-

  • NOC from your bank or Financial institution,
  • 2 copies of Form 35 provided by your institution,
  • 2 Photocopies of your Insurance and PUC aka Pollution Under Control,
  • Original RC must be attested,
  • Copy of Pan Card attested,
  • Affidavit,
  • An envelop in which your address is written with Rs. 25 Stamp for Speed post,
  • If address mentioned in Original RC and your current address are different then fill up form 33 and get it attest.

Removal Of Hypothecation


Procedure To Transfer RC/ Removal Of Hypothecation:-

  • Visit RTO where your vehicle is registered, buy an affidavit from notary sitting near RTO and get the same attested from them.
  • Visit at the designated counter & get your document verified and checked at the counter,
  • You have to pay fee of Rs. 100 as Hypothecation Removal Fees and then you will get a slip,
  • Attach that slip with your documents and submit it in other counter and get an acknowledgment slip,
  • If everything goes fine then your new RC will be sent to your address mentioned in envelope within 2 weeks,

Things you need to know :-

  • Validity of any NOC is 6 months so make sure you approach RTO with NOC within that period,
  • On form 35 you must ensure that it is duly stamped and signed by signing authority of bank or financial institution,
  • Keep original documents with you while getting documents checked at counter as many times they ask for original one too for cross check.
  • If you don’t get your new RC within 2 weeks then using that acknowledgment slip approach RTO

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