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Old 3rd August 2009, 09:09   #1
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Default Loan tenure ends - Whats next ?

Hello BHPians,

I have completed my loan tenure with ICICI bank for my Santro car. In my registration it says hypothicated to ICICI. What should I do to remove the hypthication and continue on the my name. Basically I want to know what should I do after the loan tenure ends.

1. Should I take a clearance from the bank that all the loan is paid ? as I'm planning to sell of my car now and buy a new car.

2. What is the procedure to change the hypothication ? Should I visit RTA ?

Please help me.

Thanks,
Prabhu
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Old 3rd August 2009, 09:28   #2
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I am no expert in this area, but I think you should get a certificate from ICICI which says you have paid all your loan and there are no dues with ICICI anymore. I got such a letter from ICICI once my bike loan was completed.

Not sure about changing the hypothecation though.
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Old 3rd August 2009, 09:34   #3
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Bank will give you No Objection Certificate for RTO. You need to produce that and RTO will certify that your car is out of bank hypothecation.
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Old 3rd August 2009, 10:35   #4
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@Prabhu,

Once the loan gets closed, that is, the last EMI paid, ICICI will send across to you, to the mail address of yours that is there in their system, the NOC and the checks that you might have given when taking the loan. The checks would have "cancelled" stamped across them.

This usually happens within 20 working days after the last payment. Do, expect it to reach you in a months time.

Once you get this document, that is the NOC, sign the document (I reckon they are a set) and then this needs to be produced at the RTO where your car was registered, along with the original RC book.

They will strike out the Hypothecation and return it. Just a days work. If going thru agent, a Rs.300 worth of work.

This is how it worked out for me with my previous car loan, 2 years back, with ICICI.
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Old 3rd August 2009, 10:41   #5
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I endorse all that was said earlier. There is a form from the RTO that needs to be signed by ICICI, and this must be submitted along with the NOC, for cancellation of the hypothecation endorsement. The NOC and form is valid for three months, so don't delay once you get it.
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Old 3rd August 2009, 11:04   #6
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Quote:
Originally Posted by filcord View Post
There is a form from the RTO that needs to be signed by ICICI, and this must be submitted along with the NOC, for cancellation of the hypothecation endorsement.
Why is this? I've just completed this process and there was no form given from RTO to me.
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Old 3rd August 2009, 14:20   #7
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If this is a transfer of ownership you will need the following to make the changes
Welcome To TRANSPORT DEPARTMENT GOVERNMENT OF ANDHRAPRADESH - INDIA

If your documents are in order the process is straight forward. I went thru the same and got my new registration card in 4 days.
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Old 3rd August 2009, 15:59   #8
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This NOC is also known as the Form 35. You can download & print a sample from this post (ARTICLE: How to sell a *USED* car in India).
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Old 3rd August 2009, 20:39   #9
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Thanks a lot .. everybody
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Old 3rd August 2009, 20:46   #10
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Slightly offtopic, are the RTO procedures different in different states? Even in that other thread (reg. road tax in AP), there was a mention of seizing of vehicles & paying a huge penalty.

From my understanding,
1. we just need to collect the NOC from ICICI
2. go over the the RTO office where the car is registered, pay up some 15rs (or so) for the de-hypothecation procedure.
3. They would give the forms I guess (or buy it in a shop near the RTO office)
4. fill up, add the NOC & RC, submit for hypothecation cancellation
5. Collect the acknowledgement for submission of RC & your copy of the reciept
6. Go after 3 days (or stipulated/mentioned number of days) and collect the updated RC
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Old 6th August 2009, 20:44   #11
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There was one additional step when I got the hypothecation for my bike removed. I had 3 copies of NOC from the bank. One for me, one for RTO and the 3rd for the Insurance company. Had to first get the hypothecation removed from the insurance and then apply at the RTO with the updated insurance papers.
This was some 6 years ago. Don't we have to change the insurance any more?
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Old 7th August 2009, 11:34   #12
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Get the NOC and get the endorsement cleared by the RTO. To prevent fraud the RTO has signatures of the manager of the bank on file, which are matched to those on the note. If you delay you may end up with another manager, and then you will have the get the 'current' manager's signatures whenever you want the endorsement removed.
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Old 10th September 2009, 15:53   #13
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I had a two wheeler loan with ICICI , after the tenure received balance cheque and no due letter from bank with a copy to be given at RTO some 3 yrs back , i have not done the same till now and RC & insurance also carries hypocated sign . how do i get another letter from bank or the old one is still vaild.
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