You’ve finally settled your car loan; congratulations! You\u2019re not done yet, though. There’s one remaining step: getting the bank’s name off your Registration Certificate (RC). <\/p>\n\n\n\n
The procedure is referred to as vehicle hypothecation removal<\/strong>, and it\u2019s something you need to do to reflect your ownership status with the RTO. Fortunately, similar to other RTO services, this one can also be done through the Parivahan portal online. <\/p>\n\n\n\n In this article, we’re going to tell you what hypothecation is, when to get it removed, and how to do it, whether you’re applying online or going to the RTO in person.<\/p>\n\n\n When you borrow money to buy a car or bike, your vehicle is registered with the note being “hypothecated to” the bank. It means that technically, the bank is the co-owner of your vehicle until your loan is repaid. <\/p>\n\n\n\n Once your loan is paid off, it\u2019s time to erase that tag by getting Parivahan hypothecation termination<\/strong> done. Your RC shall only show your sole ownership then.<\/p>\n\n\n You must get your vehicle hypothecation removed as soon as you pay off the entire vehicle loan and obtain the No Objection Certificate (NOC) from your financier or bank. It is advisable to do this within 14 days of loan settlement to prevent any inconvenience while transferring ownership in the future, updating insurance or during the renewal of the registration.<\/p>\n\n\n To process your vehicle hypothecation removal<\/strong>, you\u2019ll need:<\/p>\n\n\n\nWhat is Hypothecation in Vehicle Registration?<\/h2>\n\n\n
When Should You Remove Hypothecation?<\/h2>\n\n\n
Documents Required for Hypothecation Removal<\/h2>\n\n\n