Most of the people buy a car or SUV on loan. And the name of the company providing the Loan is mentioned in the Registration certificate of the vehicle. This is called “Hypothecation”. This mentions to the authority that the vehicle is owned by the loan company and it is given to the registered owner for usage.
Now after the loan completes and you receive the NOC by the loan company. Then you need to get this hypothecation removed from RC so that it can be identified as a vehicle owned by you, and not the Loan provider.
My vehicle is registered in Ghaziabad, so I will describe the process for – removing the hypothecation from RC of car/two-wheeler.
- For this you need to submit the application online on Vaahan portal.
- After selecting state, it will redirect you to another portal where you can see a lot of options available for you related to different processes.
- Select the hypothecation process.
- Provide all the details in following screens and book a slot for submitting the documents.
In Uttar Pradesh there is no fee for this. In other states the government may charge some fee for this. Now after the slot is booked. Prepare a docket with documents as given below -
- Appointment slot confirmation slip
- Original RC of the vehicle.
- Original NOC from Loan company, and another paper named Form 32/34, which will be provided to you by the loan provider. I received the document in courier after the loan is complete.
- Copy of your valid ID proof and address proof.
And just visit the RTO on selected date and time with the above documents. The counter number will be mentioned in your Appointment slip. Go to the counter, and handover the documents.
They will verify the documents and provide receiving on the appointment slip itself. And you are done.
The person on the counter will suggest you the approximate date when you can collect your new RC. For me they told me to come after 2 days. And as that was a weekday I went there on next Saturday, and collected the updated RC.
The whole process of submitting the documents took only 5 minutes, as there was no rush on my time slot. And when collecting new RC again it took just 5 minutes of time.
So, this is the whole process – I think it is very easy to follow and quickly done, looking at the history of government departments.
I got my RC updated by visiting the RTO two times and spending 5-10 minutes there at the counter.