ARTICLE: RTO Hypothecation Removal Process - Step by Step Guide
Here is a step by step guide on getting the "Finance Company Hypothecation" removed from your RC book, once the loan period is over.
Typically one would start hunting for an agent to get the Hypothecation removed. Now, I am a 'No agent' guy (got both, my Driving License & Passport without an agent) and refrain from taking services of agents, unless the procedure is very difficult to complete on my own (e.g. booking Rail tickets via the Tatkal scheme). Since my car is Pune registered, the steps and references are applicable for the Pune RTO (MH-12 jurisdiction). Note that procedures are more or less the same for other RTOs too.
STEP ONE: Documents from the Bank / Finance Company
Your bank or Financial institution would give you the following documents after Loan closure:
Once you are in receipt of these documents, it is recommended to get some extra copies made for your records.
The moment you enter the RTO, inevitably, a bunch of agents will rush to you & offer their services. Upon hearing the purpose of my visit, one agent commented "ho jayega sir" (i.e. "will be done"). According to him:
STEP TWO: Submitting your application
You need the following documents to complete your application:
Staple all the papers up together. Then, carry out the following steps to get the hypothecation removed from your RC book:
a) : Get all the documents checked by an officer. Ask around to know who the verification officer is (easy to find).
b) : Get these details entered into the RTO computer system (e.g. counter #31 at the Pune RTO). Then, walk over to the counter in charge of your number series (A, H, AB, CY etc. are clearly marked). Hand your papers to the concerned officer (at that counter) and ask him to approve your details (that have just been entered into the system).
c) : Go to the payment counter and pay the Rs. 100 fee (counter #19 at the Pune RTO).
d) : Go back to the officer in "step b" (who approved your details in the computer system). The officer will collect all your documents & give you a date on which you should come in next. This period is essentially used to verify all of the attached documents & get them approved by the concerned officer.
e) : On that specified date, you will have to revisit the RTO and meet the same officer (from "step b"). He will hand over your documents along with an "Acceptance Form", which essentially contains all the details mentioned on the RC. It is given to you so that you can make any corrections (if needed). In my case, I found that my surname was spelled incorrectly. I corrected the same with a pen, signed on the same spot & handed it back to him. He then made these changes into the RTO computer system.
f) : I was sent, along with all the documents, to counter 14 / 15 (whichever is open) to pay Rs. 350 (fees for the Smart Card RC). You will get a receipt & be asked to collect the Smart Card RC after 4 days (or in the ballpark).
g) - Go to the RTO on the date given, and collect your new RC Smart Card (sans hypothecation) :).
All in all, you need to make 3 visits to the RTO.
1st Visit : 4 steps
2nd Visit : 2 steps
3rd Visit : Collect the updated RC Smart Card.
Total Cost - Rs 450
Thanks, that was a very comprehensive guide to this process.
I'm about to do the hypothecation removal process, my loan just got over.
BTW, Kotak, who is my bank, has issued a NOC valid for only 60 days, I guess this varies from bank to bank (you have mentioned 90 days).
I do not want a smart card RC, would prefer to continue with the conventional paper book. I'm trying for that. I prefer to use an agent because I find the RTO office procedures too cumbersome and also tha, I will have to take a whole day off (since I work in A, RTO is in B).
Beautiful article. clap:
I am saving this for later. I could literally visualize the counters and the locations. Thanks for sharing @Techno!:thumbs up
Technocrat this is a valuable information for me. I need to get my Hypothication cancelled in my car and bike. Hopefully by next week I will be making a visit to the RTO in chennai.
Couldn't have come at a better time Techno. I am going tomorrow / Monday to get this done and yes, I hate agents too. In fact this is a good start to wipe them off. :)
Recently when I tried in bangalore, they insisted on a emission test certificate along with the documents which you have mentioned
@HVK- Thanks I have now added the difference in validity in my post.
Thanks Pervez & ElantraGT, I am glad that you liked it.
@Kiran - Buzz me if you get stuck or need any help.
Very Informative indeed.
Hoewever, due to these hassles of Hypothecation Removal, i try to stay away from car loan.
You can also club this process at time of reselling of car wherein Hypothecation Removal and transfer of vehicle can be done at sametime. Not to mention, fresh NOC is must.
Step 1 to Step 4 can be done in first visit, one needs to pay Rs. 100 in step 4 currently in pune RTO.
Step 5 to 7 will be part of second visit & actual collection of Smart card RC in third visit.
Specific to pune RTO:
And, please visit RTO office in mornings, it helps.
@Sukiva - Thanks, I had forgotten to mention Rs 100 in step4 & i have also added number of visits for each step in my post..
Photocopies are not required to be attested/notarised. Mine were not, also another person from my office got this done after I did it & he didnt get the copies notarized either.
How did you pay for notarization as that too will add to the total cost.
A very informative yet practical post indeed!
Corruption index here in Punjab is very high. When I sold off my Indica, entire RTO Hypothecation Removal Process took about 1 month. On the other hand, I got the new RC of my vehicle after 4 months :eek:
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