What is the procedure of RTO Hypothecation removal from RC after Car loan Closure ?

Follow the below steps to get hypothecation removed from your vehicle

1. Get the following documents from bank or financial institution which has provided you loan for buying the vehicle.

• Get NOC stating that you have paid back the entire loan amount. This NOC is valid for a period of 45–60 days. So you have to apply for removal of hypothecation within same period.

• Get Form 35 stating that your hypothecation agreement with bank can be terminated.

   Get 3 copies of these document—one each for RTO, vehicle owner and insurance company.

2. Gather the following documents

• Original Registration certificate

• Copy of Driving License

• Copy of Insurance policy

• Copy of PUC

• Copy of Owner’s Aadhaar card

• Owner’s photograph

At some RTOs, you will need to provide self-addressed envelope with phone number, and vehicle number on it. Affix a stamp of required worth on it as per the distance between RTO office and the place of delivery of new RC book/card.

3. Visit the RTO where you registered your vehicle with the documents mentioned above.

• Find out the officer, who will enter all your details in to the RTO computer system

• Another officer will approve the details. Visit this officer and provide your documents for approval

• Pay the hypothecation cancellation fee at the hypothecation counterd. Submit all the documents along with the payment receipt to officer who approved your document. Officer will give you a receipt.After this step, officer will ask you to come on a specified date to collect new RC card/book. At some States, the new RC card/book will be posted to your address as per the address provided in the self-addressed envelope mentioned above.