How to Remove Hypothecation from RC Online

If your vehicle loan is fully repaid and need to remove hypothecation from your RC, Don’t Worry! the blog will guide you about hypothecation termination process. After loan closure, your vehicle Registration Certificate (RC) still show the bank’s name under hypothecation. You need to apply for HP termination at RTO. It is necessary to understand hypothecation removal process and requirements in India.

If you want assistance for HP termination process, Itzeazy provides door step service for hypothecation termination.

Hypothecation Termination

Hypothecation is a legal agreement that allows a lender or bank to take ownership of your vehicle if you default on your loan payments. This means that until you have paid off your loan, you are not the full owner of your vehicle.

If you want to be the sole owner of your vehicle and have right to sell it or transfer ownership , you need to remove hypothecation from your RC. The process is called as Hypothecation termination. It is necessary to remove name of the financial institution or bank from vehicle RC after paid off the loan on vehicle.

Why to remove Hypothecation from RC

Following are the reasons for Hypothecation termination:

• If hypothecation is not removed from your vehicle’s RC, any insurance claim amount will be paid to the financer or bank, not directly to you
• You cannot legally sell or transfer ownership of hypothecated vehicle
• Even if you have fully repaid the loan, you are not considered the complete legal owner until the hypothecation is officially removed from the RC

Documents required for hypothecation termination

Following are the documents required for HP termination in India :

• Form no. 35 duly filled
• Certificate from financier/bank of loan closure
• Original RC
• Copy of Valid insurance
• Copy of valid pollution under control certificate
• Copy of address proof of the registered owner

Hypothecation cancellation process

You need to apply for hypothecation termination along with supporting documents at the RTO where vehicle is registered. You need to pay the requisite RTO fees for processing. After completion of the HP termination process you will get new RC. The process for hypothecation termination takes 30-45 days.

Steps to remove hypothecation from RC

• Collect physical copy of Bank NOC and form 35 from the bank
• Apply online on parivahan portal in vehicle related service
• Upload the required documents online
• Pay requisite RTO fees
• Submit application for hypothecation termination and documents atthe concerned RTO
• Processing of the application in the RTO
• Issue of new RC
• Collect RC from the RTO

Re-registration of a vehicle after 15 years

NOC for Vehicle Transfer to Other State Online

RC transfer online

FAQs

 

How long does it take to remove hypothecation from RC?

It takes 30-45 working days for hypothecation removal from RC, depending on the RTO and state process.

Why is it important to remove hypothecation from RC?

It is important to remove hypothecation from the RC to become the complete legal owner of the vehicle and to sell or transfer it without any restrictions.

Can I apply for hypothecation termination online?

Yes, you can apply for hypothecation termination online through the Parivahan Sewa website. The process is not completely online. You need to visit RTO for documents verification.

How do I check my hypothecation status?

You can check hypothecation status online through Parivahan official portal.

Why to choose Itzeazy?

🛩️ Faster processing – We make the HP removal process faster

🛩️ Guaranteed Service– Get guarantee success with our advisors

🛩️ No hidden cost – Transparent pricing

🛩️ Accurate guidance – We have the knowledge and experience to make the process smooth and stress-free

🛩️ Our presence – Apply for service from anywhere in India, always open for you

🛩️ Door step service – Document pickup & drop from the convenience of your home

🛩️ Safety & Confidentiality – Your privacy is out utmost priority

You can book order online. For any query or concern please speak to one of our relationship manager over phone or chat. You can also write to us. We will get back to you.