Wednesday, June 4, 2008

Hypothecation Removal/Cancellation/Termination

If any of you had bought a two wheeler or a four wheeler on loan will notice in your RC book that the vehicle is actually under "Hypothecation" under the bank that has loaned you though the vehicle may be in your name. Agreed and sometimes in your vehicle insurance papers as well. Once your loan term has expired (successfully) you will receive all your cheques that you must have signed and submitted which is used for ECS debit and for defaulter cases.

In my case it was ICICI bank that promptly sent me the cheques with "Cancelled" printed on each of them and then at a later stage they sent me "NOC" (no objection certificate) address both the insurance office and the RTO. Luckily here in Bangalore, and I'm sure at other places as well, Hypothecation cancellation/Termination is pretty straight forward. The bank will also send you Form 35 along with the NOC. Figure out which is your RTA in Bangalore, KA "01" comes under Koramangla RTA housed at the BDA complex.

The procedure is simple.

* Get your vehicle a pollution certificate (30 bucks) and take a photocopy.
* Get a photocopy of the Insurance certificate.
* Get the original RC book.
* Get the NOC and sign up at appropriate places in Form 35.

Go to the RTA office (before 12PM preferably) and in payment counter pay Rs 100 and tell him Hypothecation Termination. Take the receipt along with the documents and go to the counter where Hypothecation termination is done. You might have to move from one counter to other so don't get bogged down. Always address Govt. employees as "Sir" in a favourish manner and then your work gets done faster. If you know "Kannada" then just speak it. I manged with my broken Kannada. Then they will give you a receipt mentioning the date you should come and collect the modified RC book (typically between 4.30 to 5PM in 2-3 days). Say "thank you" profusely at every place.

Have a look at their webpage as well: Services they offer

No broker and wastage of money. I guess at some places you need to take a DD which is also very simple as these offices are provided with DD counters. Some brokers (mostly the car driving schools and the ones in the vicinity of RTA offices) charge 200 or 300 bucks for no real work at all. Though at the first sight the RTO folks might look like non-cooperating they will get your things done. Make sure you have all the documents and don't try to be verbose in "English". Look simple and naive and things will be done.

Time even these things are introduced at the Bangalore one centers as well. Also if you are member of the "Automobile Association of Southern India", then they will offer these services for a very nominal charge. They also help in towing your vehicle in case of breakdown and host of other services. Check out their website for more details.

Just heard that there will e-passports from 2009 in India.

Good Luck folks !


suresh said...

Good job.. ur inputs are valuable. keep good work going!!!

Balu said...
This comment has been removed by the author.
Balu said...

Thanks Suresh. This page is among the top three visited pages in my blog and you are the first person to acknowledge !

Appreciate that. Do come again !

Anonymous said...

hi i am Rakesh i have gone throuh your guid to get the termination of hypoth. i was not knowing the process but after reading ur article i could do my work easy and Thank You Very Much
good luck

Balu said...

@Rakesh: thanks for dropping by. Do visit again !

Rupesh said...

Thanks for your good post
It rally helped me.

Maharshi Desai said...

In mumbai, for a four wheeler I had to make two trip to RTO. First trip as you've described then RTO gave me a case-number. I had to again get a confirmation of hp-cancellation with that number typed in from ICICI.

Ajay said...

Hi, Can we get the hypothecation removed from a different RTO. I have TN registered vehicle,can I get this noting cancelled @ bangalore RTO. I haven't yet taken NOC from Chennai RTO for transfer of vehicle.

Balu said...

I'm not sure.. since RTA is a state-specific subject you cannot I guess... try asking or searching in the RTO website...

Sridhar said...

Good Post. useful information. Keep it up.

Rohini Kamath said...

very useful post. Thanks very much. Les Concierges charges Rs700 for this service.

Anonymous said...

Thanks for good info Balu, I am going today lets see what my fate is in RTO neva been good till date. Will write a feedback if it is bad.

gineesh said...

Friend you have given a Valuable Information,which i am searchinf for past 1 months
Thanks for the help

gineesh said...

Friend....... you have given a Valuable Information,which i am searchinf for past 1 months
Thanks for the help

gineesh said...

Friend....... you have given a Valuable Information,which i am searchinf for past 1 months
Thanks for the help

Anonymous said...


Hypothecation termination is simple as explained in the blog, only if you had not taken the vehicle for use in a different state after obtaining an NOC. The moment you had taken an NOC for using the vehicle in a different state and even if you have not used/exercised the NOC for re-registration, name change, etc. it is a complex process to get the Hypothecation cancelled.

In such cases there are two ways.

1. Get a letter from the RTO to which NOC was issued, that the NOC was not used for any purpose like re-registration, name change, etc. This letter has to be given to the RTO in which the vehicle was registered and follow the process explained in the blog.

2. You can get the same process followed in the RTO office to which the NOC was issued.

RamMohan Reddy said...


Thanks a lot for the valuable information.


Karthik Sekar said...

Balu: Your blog really saved my day! :-) I was traveling to Bangalore to get this done, and I was well prepared after reading your blog. Appreciate it! Thanks!


Anonymous said...

Good post. I recently got the hypothecation for my car removed from the RC book after reading this blog.

I have one query though. I have the other letter for insurance company. Is it absolutely necessary to infrom the Insurance people. In my case, it is ICIC Lombard and the policy was taken online w/o giving any documents.

Balu said...

I guess for insurance you can ignore this. You need to see your insurance name title to see if it mentions any hypothecation. If it doesn't then you can ignore this.

Generally some insurance name field has "Hypothecation" mentioned.

Anilkumar said...

Thanks Balu; your article was really very useful and simple and saved me a lot of headache/time of searching around.

I submitted the documents for my cars hypothecation removal today @ the koramangala BDA complex. It was exactly the way you had mentioned except that they ask you to also provide a 25/- Envelop postal cover (which you can get from the shop No.35 on the ground floor for 30/-). On this postal cover you need to mention your address as it seems nowadays they send your documents by post. I was told that it will reach me within the next 15-20 days. If it does not then i will have to visit the BDA office.

When submitting the documents make sure to PIN it all together in a single bunch alongwith the postal cover and original RC book.

Overall it took me an hour to complete the whole exercise.

I will post an update once i get my documents back to close the loop.

Thanks once again to Balu.

Balu said...


Awesome Anil. You'll get the post too. If they send it by registered post/speed post then you or somebody must be at home. Else the postman will leave a note for you to pick it up from the post office. So just watch out for it.

Akash said...

Hi Balu,
Your article was very helpful to me. My car loan [with ICICI Bank] recently completed and I received the NOC + form 35 for my RTO [Yeshwantpur RTO, Bangalore].

I made one trip to RTO and all in vain. Waited hours for "May I help you" guy to show up and when he did, the info he gave before he left was absolutely useless.

Some helpful person told me to gather Insurance, RC Book, Emission along with a clothed envelop stamped for Rs.12 and my complete postal address mentioned on it. Your article clarified to me what should be in original and which photocopies should be submitted.

I"m going to go back to the RTO again in couple of days. I have 90 days time from the date my bank has issued me NOC.

Also, I would especially like to mention the facility to leave a comment without having to sign-up on your site. That makes it so easy for people like me who are always in a hurry.

Thank you for this great blog post.
Keep up the good work.

I will soon post back my experience further.

Anonymous said...

I looked at the form CMV35 at

My previous understanding was that it is only the first page that needs to be signed by the Financier. By any chance would any body if both pages have to be signed. Would appreciate a response

CRT the Greaaaaaattttt.. said...

Thanks for ur Suggestions for theHypothecation removal process.

Srikanth said...

Thanks for the Info AB, later found that you are also from three stars corporation :)

Balu said...


What is three stars corporation ?

Ramprasad said...

Do I need to visit same RTO office as my vehicle registered RTO ?

My vehicle registered at KR Pural RTO, can I visit koramangala RTO?

Balu said...

You will have to go to KR Puram RTO where the vehicle was registered !

Manohar said...


I applied for hypothication cancel at yashwanthpura RTO, its more than 3 months over. Not yet received the my RC card. Can any body tell what next step should i have take. Your guidence will be appriciated.

Thanks in Advance.


Anonymous said...

Yeshwanthpur RTO is one of the worst, there a lady by name Mani would handle this. She does the work so lazily that u would loose your temper and feel like kicking her.

My friend, I believe you have to reach to the Yeshwantpur RTO center, go to this lady with the HPT receipt (pink color). And as mentioned by Balu, talk to them politely. Once they say it is done, personally go and collect the documents, do not rely on the postal system.