Buying a vehicle can be easy these days as there are multiple banks and financing agencies that provide vehicle loans at competitive interest rates. These loans can be availed for a flexible tenure and can be repaid in easy instalments. However, when you buy a vehicle on credit, the financer technically remains the owner of the vehicle until the loan is cleared off. The same has to be recorded in the registration certificate of the vehicle.
Need For Vehicle Hypothecation
Immediately after paying the monthly instalments against the purchase of your vehicle, it is important to get the vehicle transferred in your name from that of the financial institution that you took the loan from.
Documents Required For Vehicle Hypothecation
It is important to include the vehicle purchasing process (if purchased on loan) in the vehicle registration certificate. Below are the documents that are required for the approval:
- Original Registration certificate
- Two copies of duly filled Form 34 required for endorsement of Hypothecation
- Copy of valid insurance that is attested
- Registered owner’s attested copy of address proof
- Valid pollution attested copy under control certificate
- Prescribed fee
- Attested copy of PAN Card or Form 60 & Form 61 (depending on applicability)
Cancellation of Vehicle Hypothecation
Documents from the Lender – Once the vehicle loan is closed, the lender will give a few necessary documents such as NOC and copies of Form 35 to confirm their approval over hypothecation in writing. The validity of the NOC is three months from the issuance date. Before its expiry, an application along with the NOC should be submitted to the Regional Transport office.
Documents to be taken to the RTO
The following documents should be submitted to the RTO:
- Original Form 35 along with two copies signed by the registered owner and the bank
- Original NOC issued by the bank
- Attested copy of PAN Card
- A Valid copy of attested car insurance
- Original Registration Certificate
- A Copy of attested address proof
- Copy of valid attested PUC Certificate
- It is also necessary to take a No Dues Certificate from the insurance company.
Submitting Hypothecation Removal Application
An application to remove hypothecation along with the following documents should be submitted to the RTO:
- Original Vehicle RC
- Copy of driving license
- PUC certificate copy
- Two self-signed Form 35 copies
- Copy of insurance policy
- RTO copy of NOC
Once these documents are verified by concerned officers of RTO, a nominal fee has to be paid. Then the next date of your visit will be assigned.
The Process To Receive RC Smart Card
On the specified date, you have to visit the RTO to collect the Acceptance Form with RC details from the concerned person. You can do the required changes in the form, if applicable. Against a nominal fee, you can apply for a Smart Card RC that can be collected from the RTO within a few days of payment. This will ensure you the rightful ownership of the vehicle.