How to remove bank hypothecation for your car

car loan

As an Indian, own a car is one of our major dream in our life. But the car rates are surprisingly increases everyday. So buy a car with a bank loan is the unavoidable process of 90% of car owners.

After completion of loan, there is a procedure to remove the bank hypothecation properly. Its mandatory to remove it for some purposes, particularly when you think to sell your car. Don’t worry, its not hard like you think.

There is some easy steps to remove it properly.

  1. Close your bank loan and get NOC (No Objection Certificate) from bank officials. Its normally you may receive from the bank’s head office. In Some cases the particular branch of the bank will get it for you and give to you.
  2. After getting the NOC, just walk in to your registered RTO office with the RC book, NOC, ID Card (Aadhar particularly nowadays) and a requesting letter. Its just a formal simple request letter to tell the RTO to cancel the hypothecation.
  3. Submit the all to your RTO and ask them when it will be return back. They normally process it within 5-20 working days.
  4. Just walk in the RTO after the intimated date and get it back. The hypothecation officially removed and you can see the seal of ‘Cancelled’.

Now the car is all yours.

Enjoy your ride! happy journey! 🙂

2 Comments

  1. Hi sir,
    Iam already using modified car .. that is modified by Johnny garu from Hyderabad.. that car is manual car . I want to automatic car tata nexan pls refer and also help to exemptions process sir

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