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How to remove hypothecation from RC after car loan termination

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So you own a car under a car loan but now want to foreclose it ? There are some do’s and don’t you need to be aware of as far as car loans in India are concerned especially on how to remove hypothecation from RC after car loan termination.

Unlike a home loan where the process involves liaising with a the local bank to close down your loan, a car loan is complex as apart from the banks you also need to knock the door of the regional transport office (RTO). That is because when you bought the car on a loan, the vehicle was in the bank’s name as they paid the money to you to buy it out. Their name was endorsed on the registration certificate (RC). You will need to change this after the car loan is closed down.

Let us look at the specifics on how to remove hypothecation from RC after car loan termination.

Prepayment penalty for your car loan foreclosure

Like all loans, you need to be aware that there will be a prepayment penalty that banks will charge if you prefer to close down the car loan before the end of the loan tenure. Prepayment fee of 2% is what banks usually charge on the principal outstanding or the amount you want to prepay. Let us check with an example how this works out.

Suppose you have a Rs 5,00,000 loan taken in January 2012 at 10% rate of interest for a tenure of 5 years. You are now wishing to close this sooner rather than later and the prepayment penalty is 2%.

Using a car loan foreclosure calculator, you will note that you have already paid Rs 100,041 as interest and the principal outstanding is Rs 436,432. If you choose to close down the car loan now, you will have to pay a prepayment penalty of Rs 8,729. As long as you are happy to pay that, no issues.

Once you have decided, pay the outstanding loan amount along with the prepayment penalty and service tax. Note that you will need to get a receipt from the bank for the same.

How to remove hypothecation from RC after car loan termination

How to remove hypothecation from RC after car loan termination

It is important to transfer ownership of the car from the bank’s name to your name. This process is called removal of hypothecation. The term hypothecation means that you offer an entity as a collateral for a debt that you want to take on. You, the debtor, usually do not have to turn over physical custody of the collateral although the lender is “hypothetically” in control of the collateral. If you default, the lender will seize control of the collateral. A mortgage or car loan would be a good example of this.

Now what is important is to ensure that you receive two documents from the bank when you close down your car loan :

  1. a No Dues or No Objection certificate from the bank which essentially means that the bank has no objection to removing the hypothecation.
  2. 2 copies of Form 35 which will mention the termination of the hypothecation agreement between you and the bank.

Banks usually take 2-3 weeks to send across the No Objection certificate to you. Once you have this, you should hop over to the RTO (Regional Transport Office) to get the hypothecation removed from your  old vehicle registration and your smart card. But before you do, there is more ground work to be covered.

You need to collect the following documents and then go to the RTO.

  1. Original Bank NOC
  2. Original RC
  3. Original Form 35 (2 copies duly signed by the bank and registered owner)
  4. Copy of valid insurance – attested
  5. Copy of valid PUC (Pollution Under Control) certificate – attested
  6. Copy of PAN Card – attested
  7. Copy of Address Proof – attested
  8. And if you current address is different form the one in RC, you also need Form 33

Apart from the trip to the RTO, you will also need to liaise with your insurance company. You will also need to submit a copy of the No Dues certificate that you received from the bank to the insurance company that covers your car for comprehensive insurance so that the hypothecation is removed from their books also.

Once all the due diligence is done, you will obviously receive written confirmation from the parties that this has been done – check twice to ensure that this is the case.

The process of collecting documents from the bank is very tedious especially if you are stuck with a public sector bank. Firstly, no bank will want you to close down your loan as it is loss of business for them and secondly they might make you run around to demoralize you. And your experience at the RTO is another sad story waiting to be told with agents and touts wanting their cut of the pie – you might as a result have to make multiple trips to the RTO to get this accomplished yourself.

Anyone has had any experience on removing the hypothecation on your RC after closing down your car loan, good or bad, please share with others here ?


  1. Hi,

    One thing which people do not notice in car loan is the different rules in states. If you have change your address then in Delhi you need to inform RTO within 15 days otherwise you pay a penalty of Rs 100 p.m. from the date of change of address to the date you apply for removing hypothecation. This i got to know from my relative car which is registered in Delhi but they changed address in between. Now they have to Pay Rs 3000 for this process due to the rule above.
    This is not so in UP where by just paying Rs 100 you can get hypothecation release even if change the address. So things like this needs to be taken in consideration when your loan is running otherwise you end up paying a hefty amount.

    • TheWealthWisher

      October 17, 2012

      Post a Reply

      3000 rs is a huge sum for a rs 100 fee for hypothecation change ! Thanks Jitu for bringing this to our notice.

    • Kamlesh chopra

      October 8, 2015

      Post a Reply

      I want to know the charges of the transport authority for removing
      the hypothecation of Bank from my smart card for my car.

  2. Rakesh

    October 17, 2012

    Post a Reply

    Good write-up. Will be helpful for people who have car loans.
    Please write more such articles.

  3. Sandeep Sudhakaran

    October 17, 2012

    Post a Reply

    Thanks very much for a very well written article explained in a simplest way. It is very informative. I have to do this process within an year, closing SBI 7 years loan(8%,10%,10%, and then floating) in 3 years time. I have read somewhere that nowadays there is no pre-payment penality if its closed after crossing half of the tenure.

    • TheWealthWisher

      October 18, 2012

      Post a Reply

      Do confirm back to us if that is the case. It will be nice to hear that there is no prepayment penalty.

    • Retheesh

      February 13, 2013

      Post a Reply


      You are right, there is no pre-closure fees on SBI.. Today I settled this loan which I took in January 2010. I had also taken 7 years loan (8,8, 10 and then floating interest).. . After 3 years, interest rate was 14 % and this was the reason I decided to close this loan.

      I believe there is a RBI rule which prevents banks from taking pre-closure fees now.

      • Nirjhar pal

        April 5, 2013

        Post a Reply

        Ya correct RBI has ruled no for-closure charges but that is for HOME LOANS only not for AUTO Loans.

  4. Abhishek

    December 26, 2012

    Post a Reply

    Can anyone tell me the process to remove hypothecation in case vehicle was registered from Hyderabad and loan from same city. But now I moved to some other city. So do I need to bring my vehicle to Hyderabad RTO office? or just the NOC from Bank and other documents would be sufficient? Finally, since now I moved to some other city hence the address that was in RC previously is now different from present. So is it possible to get RC on old address only or I can get RC on new address without any problem.
    Please help me with above.

    • TheWealthWisher

      December 28, 2012

      Post a Reply

      You do not need to being your vehicle to Hyderababd. NOC from Bank and other documents will do. You can change the address on the RC. Try and let us know.

      • Abhishek

        December 28, 2012

        Post a Reply

        Thanks for the reply. 🙂
        In regards to changing the address in RC, is it really matters? I mean the current RC contains Hyderabad address where I no longer stay. And if I request for address change i.e. present one Bangalore then they might charge penalty from the day I moved to new city. Secondly, then I might have to get road tax and NOC for the state change too? So is it possible to get RC on old address so that I am safe from all above problem.?
        Please advice.

        • TheWealthWisher

          December 28, 2012

          Post a Reply

          If you drive that car in Bangalore, you still will have to get the NOC there or the traffic police will keep breathing down your neck.
          Why don’t you try it practically and see what they are saying. It might also be prudent to talk to some agents on how to do this; popular car driving schools also offer this service so you could tap into them and their practical expertise.

          • Zamir

            February 6, 2014


            I moved to Mumbai a couple of years back from Delhi, where the car was picked up from(when the loan was still in effect); now the loan is over and I need to get the Hypothecation removed, for which I’m in the process of getting the paper work in place. My query to you are a few:

            1. When I submit the paperwork to the Delhi RTO, since the car doesn’t need to be physically present, can someone else on my behalf do the paperwork? Will a letter of authority work for this or am I required to do this in person?

            2. Since I moved cities and will be filling in the Form 33 for change of address on the RC to my current address in Mumbai, would I be liable to pay damages beyond the Rs. 100 fee?

            3. What happens when I send my original RC to Delhi for Hypothecation process; how do I drive my car in Mumbai, till the time the revised RC is received? Won’t there be a problem with the traffic cops if I don’t have my original RC?

            Look fwd to your inputs on the above points.


  5. Manish

    January 21, 2013

    Post a Reply

    Hi, do you have to go to the RTO Office of the same region, from where my vehicle got registered or can I go to the any RTO Office, which is closer to my home.

  6. P Raja

    January 21, 2013

    Post a Reply

    I vechile loan is cleared in 2009. But till now i have not applied to remoe hypothecation from bank. I received all the relevent documents after completion of the loan. But i forget to remove hypohtecation. Can any one tell me what is the process to remove hypthecation now.

    • TheWealthWisher

      January 22, 2013

      Post a Reply

      Raja – That is exactly what is written in the article – if you have the documents from the bank, you need to contact the RTO.

    • pramila

      December 27, 2013

      Post a Reply

      Since you are closed you loan account in 2009 and having Noc of that date.
      RTO will ask for current dated noc agaisnt the loan.

  7. Gopa Sindhwani

    January 30, 2013

    Post a Reply

    Hi, the car is my in my father in law’s name and he expired last year. The car loan has completed this year and i have the NOC. Do i need any other documents to move the car to my husband’s name? What is the process to be followed?

    • TheWealthWisher

      January 30, 2013

      Post a Reply

      This is a complex one to be very honest. You surely need the death certificate and some notarized papers – kindly check with RTO what they want for sure.

  8. Sourabh Kamra

    February 2, 2013

    Post a Reply

    Hello TheWealthWisher,
    I have got all the documents from the bank (No Dues certificate and 2 Form 35).
    First of all I need to remove the hypothication, get the address changed and at the same time I want to get the Car ownership to be transferred in my Wife’s name, Can it be done together? How can I do it?

    Thanks Sourabh

  9. Rajesh Nayak

    February 26, 2013

    Post a Reply

    I’m working with a MNC in Gurgaon . Supposed to join another company by this month in another state. Im from Orissa. My car lease terminated today and received NOC with Form-35. Car is still with My companies name and for cancellation of hypothecation and transfer , what should i do . NOC validity is 60 days and which address i’ve to submit as i dont have any other address in Gurgaon and also i’m going to other state along with my vehicle.

    Pl suggest a way , if any body came across with such situation.

  10. NKP

    March 6, 2013

    Post a Reply

    Dear All, I want to share my experience as today I had been to RTO, Thane for removal of hypothecation of ICICI bank from my car, Wagon-R(2007), registered in Thane.

    Went to RTO office on Eastern Express Highway… its a office, off EEH, entry through a street from inside service lane… realised only new vehicles coming for registration are allowed to be parked inside.. all around area was no parking, but still left car outside and did enquiry… got to know that hypothecation work does not happen there, only license and new veh registration for comm or non-comm veh is done… I will need to got to RTO ahead of talav pali….

    I went there, could not see any pay-parking again… roamed around a little bit and then had to ask a policeman where to park my car…. he said no designated parking area is around this place, but suggested to park in adjacent small street, touching the RTO plot, actually separating it from nearby playing ground… luckily I had been there around noon and got one slot free for my car…I guess most of the rush had gone back after their work… but still a good crowd at the RTO counters… I looked around all the counters and none could find saying “Enqure Here”.. so asked a cop where to do inquiry… in the middle of the plot goes a staircase to commisioner’s office, underneath is a small housing where a lady was seated.. cop pointed to the place and went on with his path… I asked the lady about the process of removing hypothecation, and she very helpfully advised to go upstairs to know the counter number… I went up and opp to commisioners office is the mail counter.. I asked the guys at the counter.. they asked my car number … I told them complete number and they asked to talk to lady at counter 35… I went there, a small queue of 3 people, 5 mins wait, could talk to the lady.. she checked the letter from ICICI and the form 35 and then asked me to go out of RTO where next to main gate is a vendor selling forms and get 2 forms called confirmation form.. fill it and bring back… I went there paid for the forms and filled them… went back to counter, this time 5 people in queue but they all got done faster… i showed the forms, she signed the two copies without stamp and asked to go back upstairs to mail counter and get a outward number… I again went up, showed the two copies… guy date stamped both and wrote the outward # on both.. gave one copy to me and asked to come back after 15 days…

    So the procedure I understood is that this confirmation form is a letter that RTO is sending to the bank referring to NOC letter to again clarify with the bank if any issues.. the text mentions a clause saying if bank does not respond in 15 days then it will be deemed that bank has no issues.. and therefrom comes me being asked to come back after 15 days…

    For next time, I have been asked to bring original and xerox of NOC, form 35, PUC and insurance…

    Will post update after my return…

    For my guidance have referred to these links before going to RTO:

  11. H J DAS

    April 6, 2013

    Post a Reply

    Friends, can you please provide copy/content of the NOC issued by bank for releasing hyopthecation. My bank is saying only FORM 35 will be enough and there is no need for NOC. please suggest.

    • NKP

      April 10, 2013

      Post a Reply

      Mr. Das, Which is ur bank? Ideally, they should be giving 2 NOCs.. one for insurance co and one for RTO along with form 35 in two copies.. for me it was on same A4 paper, half up and half down, so 2 copies on same page…I was given only one NOC for RTO.. I guess after I get renewed smart card, I can send them copy and that should be enough for them to record at their end…

  12. NKP

    April 10, 2013

    Post a Reply

    After my 1st visit on 6-mar-2013, I recently went again on 8-Apr-2013 for the 2nd round of work..
    Again I went about 12 noon time hoping that morning rush would be over and I would get car parking in the close by lane.. and I did well..
    I went straight to the mail section on 1st floor to ask if next process is related with outward number I had taken last time..They said, I need to show my papers at counter 42 or 39, I dont remember but it stated “All work related to 4 wheeler” in Marathi..

    On reaching there the counter person was very helpful and patient… I guess he had realised from the look that I am no agent and am taking all the pain for my own car.. Upon my turn in the small queue, he asked for all the papers I had bunched as per my learning from last visit..

    1. Noc 2. Form 35 3. Insurance copy 4. PUC copy 5. Reg copy

    He removed Reg copy and asked for the actual Registration Smart card which I already had in a poly pack.. so he could easily staple it with my stack.. I noticed for others, there was some Poly sachets used.. If u dont already bring, you might have to buy one from outside vendor..

    Then he passed it to neighbouring desk for checking if there was any revert from my bank to raise objection on my hypo removal and asked me to wait for sometime.. after about 10 mins he called me and gave my stack of papers with write and initial on top page regarding fees for hypo rem 100, processing 100, and postal 50.. total was 250.. and gave me back and asked to pay up at the cash counter, i guess counter 20.. There already was a line, but my turn came in about 10 mins.. counter person took my paper stack, verified the fees details and initial by prev officer..I paid the money and got a computer receipt along with the paper stack.. I went back to prev counter to show the receipt and ask next step.. he took my stack and passed again internally to another desk.. after about 10 mins, another page of pink color was attached on my stack with 3 signature places.. one was already signed inside.. I was asked to take stack to 1st floor where head clerk would sign.. then near counter 18, Asst RTO cabin for his signature.. All this took about 20 mins as ARTO cabin had 5-6 people already in line.. after getting all the signatures, I went back to prev counter.. by this time it was already their lunch time.. so the counter person asked to come back after 30-40 mins but good thing he kept the doc stack with him.. I went outside and had some fruit salad for my lunch.. then came back and met the same person.. by this time, my stack was already forwarded computer operator inside.. in about 10 mins, he called from inside and gave me a print with details of my car, insurance, registration and hypo.. He told me to verify details and sign at bottom if all is fine.. then go to a cash counter near main entrance to pay another 350 for new smart card.. Their he put stamp as paid on the computer print and returned with another receipt.. I went back to prev counter and told him that payment is done.. Then took back all the paper stack and asked to keep both the receipts and that the process is over.. New smart card should be sent in 15 to 30 days by post..

    Thereby I left the place about 4.00 pm..

    One thing I can mention in addition to the above article, that they would not give smart card at the counter anymore.. they said, it will have to be sent by post to your registered address only.. If your address changed, then there are additional steps to be done with additional cost and time.. In case one does not receive it at home or it has returned, then there would be a application form to be filled signed with photo of yourself.. form can be bought from shop outside the gate.. need to attach copy of ID proof and address proof..then there is new step I saw another person doing.. after his forms were signed by clerk sitting inside, he was given a register to put some entry and get ARTO sign himself.. so he had to take the whole register with his paper stack and get ARTO sign and then his returned post was handed over to him..

  13. Manan Goel

    April 15, 2013

    Post a Reply

    Hi TheWealthWisher,
    In your column where you have mentioned that to remove hypothecation from rc after car loan termination, you need to have attested insurance, copy of attested valid PUC (Pollution Under Control) certificate, copy of PAN Card attested and copy of Address Proof – attested.
    Please let me know, who can help to get the documents attested.

  14. Gaurav Khare

    April 30, 2013

    Post a Reply

    Hi All,
    I wanted to share my experience of getting Hypothecation removed for my 4-wheeler. I vehicle is registered in Electronics City RTO, Bangalore so the explanation of procedure is based on the process there but apart from difference in Stamp value everything should remain the same, regardless of the RTO.

    Mandatory stuff to get de-hypothecation done
    *From Bank side:
    1. NOC from Bank form which loan got processed
    2. Two copies of Form-35, duly signed by Bank
    *From Vehicle owner side:
    1. Copy of valid Insurance certificate
    2. Copy of RC book/smart-card – RTP ppl will stamp and sign and give this back as acknowledgement.
    3. Copy of valid Emission certificate
    4. Rs 17 stamps (For EC RTO)
    5. Medium size envelope with your address written on it.
    6. Copy of Address proof, if current address is different from that in RC

    I reached the RTO at around 10:30 (their time of opening) and walked straight to Cash-Deposit counter. I told him its regarding Hypothecation removal and told him my car number. He immediately printed a receipt of Rs.100 and gave it to me. Then I proceeded to the concerned officer (ask the cashier itself regarding whom to meet), the officer checked my documents and signed on the forms. The person next to him collected the documents and gave acknowedgement on copy of RC.
    Thats it. The complete process took about 15mins.

  15. Raj

    May 20, 2013

    Post a Reply

    Hi, I have a complicated case. I bought a 2nd hand car and as the car was on loan which was over so the owner took the NOC from the bank and gave to me for Car transfer with all other necessary documents duly signed. I think the NOC is valid for 6 months only. I moved to onsite for 2 years and couldn’t transfer the Car. Now I am not able to contact the owner. Is it possible to get the NOC from the back from Owner’s behalf?

    • Syed Yaseen

      November 19, 2014

      Post a Reply

      Go to the bank where the NOC was issued from. They will issue a fresh NOC

  16. Abhishek

    June 29, 2013

    Post a Reply

    Thanks for the write up.
    I closed my car loan recently. I checked the RC and saw that there is no mention of Bank.
    It states my name and there is no place where Bank name is written.

    What i am missing here?

    • nirjhar Pal

      July 2, 2013

      Post a Reply

      Hi Abhishek,
      it’s not actually where you should be looking for the bank name, there will be something written like , “hypothecated to” and after that your Bank name will be written, pls check again…

      • Abhishek Chhajer

        December 27, 2013

        Post a Reply

        Hi Niranjan,

        Thanks for writing.
        I checked again my RC and i don’t see anything of that sort.
        Is there any other place where it will appear?

    • Syed Yaseen

      November 19, 2014

      Post a Reply

      Usually on the RC smart card, you will not find the bank’s name. It would be on RTO records. Ask the RTO to get you the details.

      Infact , on the RC card, you will not even find that the car is hypothecated. What a shame!!

      How should a buyer know if there is a loan on the vehicle? One can get cheated.

      I have had 2 used cars. It is a first hand experience.

  17. nirjhar Pal

    July 2, 2013

    Post a Reply

    Hi Abhishek,
    it’s not actually where you should be looking for the bank name, there will be something written like , “hypothecated to” and after that your Bank name will be written, pls check again…

  18. Krishna

    July 8, 2013

    Post a Reply


    I do have a question. Is it necessary to provide an insurance certificate copy along with other documents because I don’t hold that one. If yes, then what need be done to avoid any problem.

  19. chandrasekaran

    July 20, 2013

    Post a Reply

    Respected sir
    I purchased two wheeler in the year 2001. I am working in chennai port trust. In year 2001 chennai port trust named as madras dock labour board. In the year 2001 with the help of Mdlb cheque and hp by mdlb in RC book. My loan completed in 2008. Due to my personal work after completed on loan i haven’t got noc. I like to sell my two wheeler . In rc book hp by Mdlb. So i asked for Noc in MDLB . After 2006 Mdlb as merged to chennai port trust. I got Noc from Chennai port trust. I applied for HP cancellation in RTO office ALANDHUR Chennai-16, asking forMDLB noc . File rejected can you guide me what to do next action

  20. Srinivas

    July 25, 2013

    Post a Reply

    It is very useful for persons like me. With your guidance I am hopeful to complete the ‘removal of hypothecation’ process at one go at RTO this week. I got NOC from bank (SBI) at ease and also got the Form-35 from SBI RACPC in 1 hour’s time. Bankers said I can get my RC on my name within 3 month’s time.

  21. Praveen Kumar K

    August 7, 2013

    Post a Reply

    I got an NOC and form 35 dated 2007. I have not cancelled the hypothecation yet.
    Can the same form be used now to cancel the hypothecation
    Or Is there any time validity from the date of issue of NOC.

  22. ankur

    August 9, 2013

    Post a Reply

    Thanks to all for sharing useful information.
    I have a question regarding removing hypothecation from RC and NOC for other state.
    I have purchased bhopal registered car on jan 2013 by a dealer in pune. At the time of purchasing, dealer promised me that he will make the registration of the car on name at pune rto, and ill have new RC of my name. Its almost 7 months gone, but till now dealer even didnt get NOC from bhopal. There was HP on the rc which we didnt know till last month. Dealer has appoint agent in bhopal, as dealer doesnt know the process of bhopal rto. Now dealer’s agent in bhopal again apply with Bank’s NOC and all required documents last month itself, already 10 to 15 days has gone but, i do not get NOC. Every time agent tell us that process is going on.
    Can any one tell me how many days would bhopal rto take to remove hypothecation from RC and provide NOC for pune.
    Thanks in advance..

  23. Smruti

    September 13, 2013

    Post a Reply

    Sir,I had take a car loan from icici finance in 2006 and cleared it up in 2009 but forgot to I collect the noc. I had gone to the bank few days ago to ask for the noc but they R unable to give me the noc. They told me that it is not showing in their system as it is too late a case.i also don’t have the loan agreement no. So,sir pls tell me what shall I do now

  24. p k rath

    January 9, 2014

    Post a Reply

    nicely explained. because where and whom to ask about removal of hypothecation. it is enough to get the idea. today i have closed my car loan. i will now collect all the documents and proceed further easily.

  25. Anil

    January 26, 2014

    Post a Reply

    When I got the hypothecation removed the Registering Authority issued me a new RC but wrote the world “Duplicate” on it. Is it ok ?

  26. Pradeep

    January 31, 2014

    Post a Reply

    Dear All,

    please suggest me the procedure to check out the hypothecation status of any vehicle by registration number of vehicle.

  27. Srinivas Sivan

    March 5, 2014

    Post a Reply

    Thank you sir for such i kind help 2day i went 2 rto office completed all formalities will get my rc in 30 days.

  28. Rajesh

    March 19, 2014

    Post a Reply

    Is the vehicle required to be produced to get the hypothecation removed from the RC book

  29. nivedha

    March 31, 2014

    Post a Reply

    i closed my car loan n de sbi bank for the past 2 months…but still they r not even ready to produce noc. certificate…what can i do for this.wen i asking wid those pple simply sitting and telling..without proper respose..they r very unfriendly to the peaple..

  30. Prasanth

    April 26, 2014

    Post a Reply


    After submitting document how many day’s will take to get the original RC book?

  31. Rajesh

    May 4, 2014

    Post a Reply

    Thanks for this complete process , Last week I went to Gurgaon RTO office at Mini Secretariat, there are looking little more documents.

    Along with the above mentioned document in publication we need 2 more documents at Gurgaon RTO office .

    1) Driving Licence ( attested )
    2) 10Rs Affidavit by court for Loan clearance.

  32. Sridhar S

    May 9, 2014

    Post a Reply

    This is the procedure in Tamil Nadu (taken the extract from RTO website_

    Government of Tamil Nadu
    State Transport Authority

    Termination of Hire Purchase / Lease / Hypothecated

    Who can apply for making an entry in the registration certificate regarding termination of the agreement for higher purchase/lease/hypothecation?

    Owner of the Vehicle

    2. What are the documents to be given?

    Notice of termination of agreement in Form-35 (in Duplicate).
    Registration Certificate
    Insurance Certificate
    No objection certificate from Financier
    Valid Tax
    Valid Pollution under Control Certificate

    3. What is the amount of Fees payable?
    Rs.100/- + Service charges Rs.25/-

    4. To whom should one apply?
    Regional Transport Officer (or) Motor Vehicle Inspector, Grade-I / II.

    5. Time limit for service to be rendered?
    Same day

    • Nagarajan

      September 10, 2014

      Post a Reply

      Do we need to take the car also for removing the hypothecation? Or just documents are enough?

  33. Suraj

    May 30, 2014

    Post a Reply

    My dad has lost his RC book & contacted an agent to get the duplicate RC book, He charged abt 1200 Rs for that, & has still not cooperated, Can anyone explain me detailed steps to acquire it without the help of an agent.

  34. Anonymous

    June 12, 2014

    Post a Reply


    One of the best articles I have came across. Thanks for helping out people like me.

    I too had to visit RTO Mumbai West office for Hire/Purchase termination, was a bit skeptical as how it could be done.

    Process was very simple, following documents are needed:
    1. No Objection Certificate from Bank.
    2. Form 35 two copies duly signed by Bank and self.
    3. Original RC Book
    4. Insurance Xerox
    5. PUC Xerox

    2nd Floor, Window No 2
    Andheri RTO

    Type of Vehicle: Car

    Total Cost: Rs. 100 (Only)

    Time taken: RTO took 3 days to make changes in RC book with cancellation stamp.

    Total Visits:
    1st visit to submit documents and pay Rs. 100
    2nd visit to collect RC book with all cancellation done.

    Note: Beware of agents as one of them quoted 1200 and was promising to get the work done in 30 mins. Upon doing the whole process myself it just took 15 mins for 1st visit and 5 mins for 2nd visit.

    • Deepesh

      August 30, 2014

      Post a Reply

      Request to please provide your Mobile number, I need to remove hypothecation from my car. Thanks
      99202 67360

  35. Pankaj

    June 12, 2014

    Post a Reply


    Do we get a new copy of RC (with Bank name removed) after dehypothecation? I have to undergo this within a year.


  36. joey

    July 9, 2014

    Post a Reply

    I have a newbie question –
    If I buy/finance a car for my friend, can I have my name in the RTO book (under hire purchase/hypo section?)? My friend is the owner, but I paid for it. He is going to return the money in installments. It was an all cash purchase. Thanks!

  37. Through my company, I have taken one car (Swift VXI) on lease. The leasing agency have taken car on hypothecation. Now due to some reasons, I need to quit job from my existing Company and need to settle foreclosure of the car and buy the car on my name, for that purpose I need to take car loan from bank. My question is if the car is already on loan by leasing agency, what difficulties I can expect if I go to bank for car loan? Please advice.

  38. Santosh Mahadik

    October 10, 2014

    Post a Reply

    I had purchase the bike in Aug 2000 and on the RC Book the hypo is Nationwide Finance Bank. i want the NOC from that bank but unable to get the bank details or contact no.
    pls help for this.

  39. Deva

    November 13, 2014

    Post a Reply

    Thanks for the valuable information.
    Is it possible to do the process (hypothecation termination) in different RTO office (other than the vehicle registered office) in Same City.

  40. Atul

    November 13, 2014

    Post a Reply

    Hi ,

    I have purchased wagon – R car and registered in thane , My name is mentioned in registered documents and all other vehicle documents as A J Khandelwal though the name mentioned in KYC document as A Khandelwal.
    When i enquired from dealer he told Midlle name J came as father name but this is not mentioned in middle the KYC documents i have.
    Please let me know whether the same can create problem in future or should i request to dealer to make the change else remain the same.

  41. Syed Yaseen

    November 19, 2014

    Post a Reply


    When you buy a used car which is under hypothecation, go along with the owner to the bank and check the outstanding balance and ask the owner to pay the part of the outstanding amount which is excess to the amount that you both have agreed upon.

    If you just pay the amount that you agreed to buy the car, you will fall in trouble, since the bank will consider that the owner has paid it, not you.

  42. Anil Kumar

    November 29, 2014

    Post a Reply

    Just to share the experience I had at Sarai Kale Khan Transport Authority, New Delhi.
    It gets open at 8 AM. Directly go to the counter no 4 and pay fee Rs. 350 (Cancellation of Hypothecation + Alteration of vehicle + Smart card fee , 100+50+200).
    Once you get fee receipt, go to counter no 5 and get the disclaimer afterwards check the details in disclaimer paper and sign if you find all details correct. Submit it to counter no 6 and take your RC Fee submission receipt.
    It took 10 mins for me to do this all. They will call you after 28 days to collect renewed RC smart card.

  43. Kumar

    December 17, 2014

    Post a Reply


    Unfortunately my company name has changed due to an acquisition and it was done 8-10 years back.
    I got the NOC just recently. So now the NOC shows the new company name and the RC book shows the old company. The RTO officer will see that the company names differ. How do I resolve this in the RTO. Please help.

  44. Aniruddha

    June 25, 2015

    Post a Reply

    My two wheeler Loan has been NIL 5 years back. Now I wanted to go sale it off. So,

    1. There is validity of 3 months for NOC and Form 35.. Why RTO demands latest NOC and FORM 35, again and again every after 3 months ? Any purpose any logic here ? Because once loan is closed it is closed then why we need to provide the latest proof for the same again and again ?

    2. I do not have smart card but have paper RTTC slip.. I just wanted to cancel hypothecation. I do not need smart card as I am going to sale it off and transfer it immediately after cancellation of hypothecation. So is there any way I can save on smart card amount and just cancel hypothecation on paper ?

  45. Nagaraj Iyer

    July 16, 2015

    Post a Reply

    Steps to remove hypothecation to Bank from your RC in Kerala

    1. Collect your NOC and Form 35 (two copies duely signed by you) from your bank once the last EMI is paid by you for your loan.

    2. Take original RC

    3. Take copy of PUC Certificate

    4. Take copy of Licence

    5. Take a self addressed envelope stamped for Rs.40/- (This is for RTO to send you the RC)

    6. Pay Rs.175/- through Akshaya Centres (they will ask a service charge of 35/-, hence total Rs.210/-). They will give you an A4 size receipt.

    7. Write an application stating the subject to RTO and staple all the above documents.

    8. Go before 1PM to your respective RTO Office as they will not take the application after 1PM.

    9. Submit the application and take back the receipt, which will they will tear from the Akshya receipt you submitted (half of A4 sheet) duely signed by RTO clerk.

    10. You will receive your RC book within two weeks (Hence total cost spent by you is Rs 210 in RTO plus Rs.40 for stamp and Rs.5 for envelope which is Rs.255/-)

  46. sabarish

    October 11, 2015

    Post a Reply

    is it really necessary to change achually i got the noc but now i wants to change my car so i wants to sell my present please anyone reply what happens if i dont submit my noc to rto office

  47. Prince

    October 19, 2015

    Post a Reply

    I read the details, but my situation is My father had a car loan he died last year and loan due was 1,21,000 and his saving account had 1,25,000 i requested to bank to recover that amount from his saving account they did and provided me no dues certificate.
    but the hurdle is they say that they are unable to give Form 35 as my father is no more to sign it how can we give form 35 bank is saying???? bank is sbi.
    And i want to transfer the car ownership to my mother which i cant as form 35 is must for that please help.

  48. Jacob

    October 25, 2015

    Post a Reply

    Is a direct communication from the financing company to the RTO confirming the closure of the loan account a must for cancellation of hypothecation? The company refuses to do this as they say the RTO is aurhorized to cancel the hypothecation if there is no reply from the company in 15 days. They returned the RTO’s letter to them to me endorsing their confirmation on the letter itself. But the RTO refuses to accept this from me and is adamant that there has to be a direct letter sent to him by the company. Now, who is at fault here – the RTO or the company? How to proceed further? The matter has been pending with the RTO for almost a year!

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