Nowadays owning a vehicle is very important for someone’s own convenience. But many times, buying a vehicle like car or motorcycle means a big investment as these are quite expensive. So many people take the help of bank via car-loans or credit cards and it becomes affordable. But there’s a problem, until the day you have payed your last installment, the bank or credit card authority holds the ownership of your car and all cars which are financed, comes with a ” Finance Company Hypothecation “. That’s why it’s very important to remove hypothecation from RC.I am discussing the need and procedure below
Also read how to get duplicate RC of vehicle
Why do you need to remove hypothecation from RC
There are Multiple reasons to remove hypothecation from RC
• If the hypothecation on your vehicle is not terminated, all the money of the insurance of the vehicle will go to the financer or to the bank.
• You cannot sell a hypothecated vehicle neither can transfer the ownership.
• Though you have completed the payment for buying the vehicle, you are not the official owner of The vehicle you remove hypothecation from RC
Documents required to remove hypothecation from RC
You need some documents in order to remove hypothecation from RC. You Will be needed to submit the following
• Duly filled l Form 35. also you need two copies of it, both signed by the registered owner of the vehicle and the bank
• Bank NOC(original).
• Copy of your Pan Card if you don’t have pan card then Form 60, and Form 61,
• Copy of car insurance
• Original RC of the vehicle
• Adhaar card or other address proof. If your current address is different from the address in the RC, you will have to submit Form 33.
• Pollution Under Control (PUC) Certificate
Now you will need to do another thing, visit your regional RTO, go to the insurance company, and submit a copy of No Dues Certificate. Don’t worry you will received the No Dues Certificate from the bank. Thus the HP will be removed from their records . Then you will receive a written confirmation signed by the competent authorities.
Process to remove hypothecation from RC offline
• Go to the RTO from where you got your RC and verify all the documents by the verification officer.
• The staff there will enter your details in the RTO’s computer-based data system.
• Next, go to the registration counter and show the verified documents.
• After approval of the documents go to the payment counter and pay the required fees.
• Now Go to the registration counter and submit the receipt of payment with the other documents. They will give you an appointment date, on that day the RTO will verify the documents (final verification) and approval from the concerned officer will be given.
• Go to the RTO on the given date. There the officers will return your documents with ‘’Acceptance Form’’, you will see all the details in the form which were in your RC.
• Go through the form and check the details.
• Now you have to sign the acceptance form and submit it to the officer.
• Next you have to pay the fee for the new smart card RC.
• After successful payment, you will receive a receipt and a date on which you have to collect the Smart Card RC.
• Visit the RTO on the given date again and you will receive your smart card RC.
How to remove hypothecation from your RC online
You have to follow these steps to apply for removing hypothecation from your RC.
• Go to the website https://parivahan.gov.in/parivahan/
• A page will open, click on vehicle related service, now enter vehicle registration number and proceed.
• Click on “online services ” then choose the second option.
• Now enter the chassis number and click on validate
• Next an OTP will be sent to your registered mobile number, enter it and click on submit
- In the next page click on termination of hypothecation box.
- Here you will find all of your details related to your RC. check the details and then Scroll down, you have to fill some other details too, fill them.
- After filling the details scroll up and click on terminate and now select the date of termination of hypothecation
- Now Scroll down and click on payment
- After successful payment print the e-receipt
- Also print the owner details
- Now go to your regional RTO with all the documents including the receipts and submit them to the concerned counter or officer.
After approval of the documents, you will receive your RC smart card in a month it will not be hypothecated by any financer or bank authority.
Hope now you have understood the procedure of termination of hypothecation from RC. If you liked the article don’t forget to share and comment.