Repaid your loan? Follow this premium guide to remove the bank's name from your RC and get full ownership of your vehicle.
Once your last EMI is paid, the bank issues a No Objection Certificate (NOC) and two signed copies of Form 35. This is usually sent to your registered address.
Visit the Parivahan Vahan portal, enter your vehicle details, and select 'Hypothecation Termination'. Upload your documents and pay the RTO fee (approx. ₹100-200).
After RTO approval, a new Registration Certificate (RC) is printed without the bank's name and sent to you. You now have **100% legal ownership**.
To avoid rejection at the RTO, ensure you have the following documents ready before starting the online termination process:
Visit vahan.parivahan.gov.in and enter your vehicle registration number. Choose your State and RTO.
Navigate to 'Services' > 'RC Related Services' > 'Apply for Hypothecation Termination'. You will need to enter the last 5 digits of your Chassis Number for verification.
Select the bank name and enter the NOC Date (found on your bank letter). The termination date should be the same as the NOC date.
Pay the requisite fee online. Download the Application Form (Form 35) and the Fee Receipt. In faceless states, you only need to upload the scans; in others, a physical visit may be required.
Hypothecation Termination is the process of removing the bank's name from your vehicle's Registration Certificate (RC) after you have fully repaid the vehicle loan.
Yes, a No Objection Certificate (NOC) from the lending bank is mandatory, along with two copies of Form 35.
No, you cannot legally transfer ownership of a vehicle if it has an active hypothecation. You must first terminate the HP using the Bank NOC.
Typically, a Bank NOC for vehicle loan closure is valid for 90 days from the date of issue. It is recommended to complete the RTO process within this window.
Hypothecation Termination is mandatory before you can transfer ownership. After clearing your loan, calculate the potential **Road Tax** refund or transfer fees for your next car.