Here are the vital steps for hypothecation in RC book.
rnObtain the NOC, Form 35
rnThe moment you just pay off your loan, your bank must offer you with the documents for the loan closure process. This will comprise a No Objection Certificate (NOC). Check your Car Loan documents to view within what exact time frame your moneylender has to refer you the closure papers. Typically, the time frame is all about a week or a fortnight.rnrnClosure papers are those that will confirm that you have paid the entire loan and the loan account has been totally terminated. These papers comprise the NOC declaration report without pending amount. Next document is Form 35. This will report that your hypothecation contract with the bank can be dismissed.rnrnThe closure papers referred to by the bank are usually valid for almost 3-6 months from the date of issue until or else specified in the document. If you locked your Car Loan a while before, you might have to obtain a new set of documents as your Regional Transport Office (RTO) office perhaps speak that old papers are no longer usable. Likewise, you might want to obtain at least 2-3 copies of the NOC. One is required for yourself, one for the RTO and another is required for Car Insurance company if they want it.rnCollect other documents
rnFurthermore to such aforesaid papers, you must carry other documents associated with your car. This comprises replicas of your Car Insurance, PAN Card, address proof and Pollution Under Control (PUC) certificate. You also require your original registration certificate with a replica of your driving license.rnVisit your RTO
rnTo abandon your hypothecation, you have to visit the RTO at which you registered the vehicle. It isn’t likely to do this at any other RTO, regrettably.rnrnAsk people to find out who the verification officer is. Then provide and submit your entire papers to the verification officer at the RTO. The officer will put the whole information and into the system. Then the next officer will sanction the details given into the system. After that, you have to visit the payment counter to pay off the hypothecation annulment charge. Submit all your papers to the officer who sanctioned your documents. Also, show the officer the evidence of payment. You will be provided a date on which you can reply to the RTO.rnrnThere is a new step for some RTOs. The RTO will offer you with an application letter for annulment of hypothecation after verification. You need to submit these to the bank which approved you the Car Loan. Your bank will offer you an approval letter comprising an outer number. Specified this number to the RTO. Take a note that some RTOs might not need this approval letter. Check with your RTO about this.rnrnOn the date specified by the officer, visit the RTO and gather your papers along with an ‘approval form’. You can make improvements on the approval form if details such as your name are incorrect. Sign the form and provide it to the officer. Gather all your documents and charges for a new RC smart card. You just have to pay an extra charge for the change of address.rnrnMany RTOs these days offer a smart card as the RC and not a book. The entire charges usually range between Rs. 300 and Rs. 1,000 it depends on your RTO. The RTO gives receipts for the charges paid. Some RTOs refer the card by post while others may ask you to gather it from them. It generally takes 4 days to a month to obtain the fresh RC smart card.rnrnAll the information will be on the RC card and the hypothecation would have been eliminated. So, you need to maintain a copy of your RC card although if you have the RC card with you every time. This will fully assist you if your RC card get removed at all time.rnrnRead More: RTO Hypothecation
