I closed my car loan earlier this year (around April actually!) and have been meaning to get this done for a while. But have been putting it off expecting it to take a long time. Finally today, as the year is almost coming to an end, I decided to just get it over with no matter how long it took. And it didn't much time at all!!
I wanted to get this done myself after finding out earlier this year that a visa agent was charging Rs.11,000 when I could do it myself for Rs.8500!
After checking with a few friends, I found that many are yet to complete this process, or went through agents for this. But we can do this ourselves!
So here are the steps:
When does this have to be done
- When the vehicle loan you've taken is paid off to the bank
- And the bank has acknowledged the same by giving:
- No Dues Letter
- Form 35 (2 Copies)
- Letter acknowledging the request for Hypothecation
Documents required to be submitted:
- Registration Certificate - RC Original (Keep a copy for your car or bike)
- Form 35 from bank- both copies (Original) (Notice of termination of agreement with the bank)
- No Objection Certificate - NOC from the bank (Original)
- Copy of Current Insurance Certificate of the vehicle
- Copy of Pollution under control Certificate (Pollution certificates can be obtained from petrol bunks close to the RTO mostly, some others as well
Rs.125 (in 2016)
- Data Entry
- Go to the data entry counter and tell them you need to cancel hypothecation
- The person will check if you have all the documents required
- They will update the details of your current insurance
- Pay at the cash counter (closes at 12:30 pm)
- When you tell the person it's for cancellation of hypothecation, they will tell you how much
- The receipt will have 2 halves
- Stick the left half receipt copy to the first copy of the Form 35
- Check with people at the counter for exactly how if required
- All the documents have to be finally submitted at this counter
- Original RC
- NOC Certificate from Bank
- Form 35 with receipt stuck
- Second Form 35
- Copy of Insurance Certificate
- Copy of Pollution Control Certificate
- Keep the other copy of the receipt with you
- Make sure you have a copy of the RC for your vehicle during this process
I went on a weekday morning at 11:00 am.
The whole process took less than half hour, the only place I waited a while was at the cash counter queue.
Everyone's really helpful. There were 2 people at the entrance till 12:00-noon giving people directions.
Pretty darn simple :)