You may be wondering how to check vehicle loan status online ? When you are buying a used vehicle or you have applied for HP termination from your vehicle RC then you want to know “how to check hypothecation of vehicle online “. Worry not ! In this article, we will talk about how to check vehicle finance details online. But first, let’s dive into what is hypothecation in RC.
What is Hypothecation in RC?
When you purchase vehicle after taking loan from the bank, in the RTO record vehicle is hypothecated to the bank. The bank keeps the car as collateral or as security until you re-pay money for it.
Your bank owns your car during the period when loan on the vehicle continues, although you are the registered owner. Do you know that buying a car on credit implies that you just do not actually own the vehicle until this debt is repaid?
After the vehicle loan is fully repaid, hypothecation removal will allow you to claim the vehicle as your own property.
When you buy a vehicle with a loan from your chosen bank or financial organization, in such a case, your car becomes the collateral or security for the credit. If you fail to repay the dues, the financial lender can repossess the vehicle in question and sell it off. This allows a bank to avoid losses even when a borrower defaults.
Hypothecation ensures that the car or bike ownership remains with you along with your lender until you complete repayment. When you register your car after purchase at the local RTO, the office will ensure that it’s registered in your name and is hypothecated to the bank.
Even the registration certificate or RC will bear your name as the car’s owner. However, its RC will have a special note stating that the vehicle is hypothecated to your lender.
How to Check Hypothecation of Vehicle Online?
You can check hypothecation of vehicle online through official website parivahan,
The steps to check hypothecation of vehicle online are given below:
- Open the Parivahan website
- On successful login, Move your mouse over to “Online Services” and choose “NR services”.
- Now click on ” Know your vehicle details “
- Register yourself using your mobile number and email id.
- Now login into the website using mobile number and password .
- Enter registered vehicle number and captcha code correctly. Press get details button.
- Vehicle details will be displayed . If there is loan on the vehicle , In the finance , it will be shown as ” Yes ” . If there is no loan on the vehicle in finance no detail will be there.
When do you need to remove hypothecation from RC
After repaying the loan on your vehicle, you have to apply for HP removal from RC. It is necessary as to claim the vehicle as your own property. It is also essential while selling the vehicle or ownership transfer of car//bike in India.
How to Remove Hypothecation from RC online
RC transfer documents required
RC transfer fees for vehicle in India
FAQs
How long does it take to cancel hypothecation?
It takes approx. 30 days for removal of hypothecation. It may vary as per RTO office.
How to check hypothecation removal status online
You can check the cancellation RC hypothecation status of your vehicle using the Parivahan website.
How do I delete a hypothecation in RC from RTO?
Application for removal of hypothecation and therefore the following documents must be submitted to the RTO: The Original Vehicle RC. Copy of address proof. Copy of PUC certificate. Two copies of Form 35 are signed. NOC from bank Copy of insurance.
Is it necessary to remove hypothecation from RC?
Yes, it’s important to terminate or remove hypothecation of a car if the loan has been paid fully to the lender. Once you have got paid off the loan amount, make sure you get the NOC from the bank stating that there’s a no balance of your loan. However, you would have to apply for HP termination at the respective RTO. The transport department will remove it and transfer the complete title to the car owner. This ensures you’re the entire owner of the car.
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