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Hypothecation

Hypothecation is the process of agreeing to use an asset as collateral in exchange for a loan. With a vehicle loan, for example, you agree that your vehicle is used as collateral to secure your loan; if you can't repay the loan, your lender can repossess the vehicle.

Need For Vehicle Hypothecation


Immediately after paying the monthly instalments against the purchase of your vehicle, it is important to get the vehicle transferred in your name from that of the financial institution that you took the loan from.

Procedure of Endorse And Termination Of Vehicle Hypothecationn

Buying a vehicle can be easy these days as there are multiple banks and financing agencies that provide vehicle loans at competitive interest rates. These loans can be availed for a flexible tenure and can be repaid in easy instalments. However, when you buy a vehicle on credit, the financer technically remains the owner of the vehicle until the loan is cleared off. The same has to be recorded in the registration certificate of the vehicle.

Documents Required For Vehicle Hypothecation


t is important to include the vehicle purchasing process (if purchased on loan) in the vehicle registration certificate. Below are the documents that are required for the approval Original Registration certificate
Two copies of duly filled Form 34 required for endorsement of Hypothecation
Copy of valid insurance that is attested
Registered owner's attested copy of address proof
Valid pollution attested copy under control certificate
Prescribed fee
Attested copy of PAN Card or Form 60 & Form 61 (depending on applicability)

Cancellation of Vehicle Hypothecation


Documents from the Lender - Once the vehicle loan is closed, the lender will give a few necessary documents such as NOC and copies of Form 35 to confirm their approval over hypothecation in writing. The validity of the NOC is three months from the issuance date. Before its expiry, an application along with the NOC should be submitted to the Regional Transport office.

Documents to be taken to the RTO


The following documents should be submitted to the RTO: Original Form 35 along with two copies signed by the registered owner and the bank Original NOC issued by the bank Attested copy of PAN Card A Valid copy of attested car insurance Original Registration Certificate A Copy of attested address proof Copy of valid attested PUC Certificate It is also necessary to take a No Dues Certificate from the insurance company.

Submitting Hypothecation Removal Application


An application to remove hypothecation along with the following documents should be submitted to the RTO: Original Vehicle RC Copy of driving license PUC certificate copy Two self-signed Form 35 copies Copy of insurance policy RTO copy of NOC Once these documents are verified by concerned officers of RTO, a nominal fee has to be paid. Then the next date of your visit will be assigned.
On the specified date, you have to visit the RTO to collect the Acceptance Form with RC details from the concerned person. You can do the required changes in the form, if applicable. Against a nominal fee, you can apply for a Smart Card RC that can be collected from the RTO within a few days of payment. This will ensure you the rightful ownership of the vehicle.

How to check vehicle registration information/ RC details online:

It is very simple to check vehicle RC details online. The Ministry of Road Transport and Highways created the Vahan e-service portal that serves as a centralised national register for all registered vehicles in the country. Through this online portal, users can get to know vehicle details. In order to get the RC owner details, as well as know about the vehicle, you need to follow the following steps:








A step-by-step guide

Step 1: Visit the Parivahan Sewa Portal at https://parivahan.gov.in/parivahan/
Step 2: Click on the ‘Online Service’ section
Step 3: Select the ‘Vehicle Related Services’ option
Step 4: From the drop down menu, select the state where the registration certificate has been applied from.
Step 5: Enter your vehicle registration number
Step 6: Select the ‘State RTO’ from the drop-down menu
Step 7: Select the ‘Status’ option from the menu on top of the page and click on ‘Know Your Application Status’ option
Step 8: Enter your application number, the captcha code and click on Submit.
Step 9: Select the ‘View Report’ option.

On entering the correct particulars, you will be able to view the vehicle RC details, the vehicle RC status as well as the RC owner details.

FAQs

What is a Vehicle Registration Certificate or, more popularly known as, Vahan RC?

A vehicle registration certificate or an RC is an official document issued to verify that a particular vehicle is registered with the government of India. The Motor Vehicles Act, 1988, dictates that no person can drive a vehicle that does not have a valid registration certificate. The Vahan RC is valid for 15 years from the date of issue, and after it expires, it can be renewed for a period of 5 years.

The Indian government has made the process of applying for a vehicle registration certificate available to the citizens both online and offline. To get a vehicle registration certificate online, you need to follow the following steps:

Step 1: Log on to https://parivahan.gov.in/parivahan/
Step 2: Click on ‘Online Services’ section on the top menu bar
Step 3: From there, select ‘Vehicle Related Services’
Step 4: You will be redirected to a new page, where you will be prompted to enter your state.
Step 5: Select your state from the drop down menu.

You will then be redirected to the relevant Vehicle Services page based on your state. From there, you can apply for a vehicle registration certificate online.

You need to submit the following documents in order to register your vehicle:
  • Copy of PAN card
  • Passport sized photographs
  • Purchase invoice of the vehicle
  • Address proof
  • Attested copy of vehicle insurance
  • Temporary registration details issued by the dealer
  • Valid identification proof
Forms required:
  • Form 20
  • Form 21
  • Form 22
  • Form 22 - A

The charges for getting the registration certificate are different for different vehicles:
  • Two-wheelers: Rs. 300
  • LMV (Non-transport): Rs. 600
  • Medium Goods and Passenger Vehicles: Rs. 1000
  • Heavy Goods Vehicles: Rs. 1500
  • Heavy Passenger Vehicle: Rs. 5000
  • Imported Motor Vehicles: Rs. 3000
  • Imported Motorcycles: Rs. 5000

In case your RC is torn, stolen or misplaced, you can apply for a duplicate RC. In order to do so, you need to follow the following steps:
  • File an FIR at your nearest police station.
  • Fill Form 26 to apply for a duplicate RC.
  • In case your vehicle is on loan, get the form signed by the financier.
You need to submit a complaint letter to the RTO office that had issued the original registration certificate to you, along with the following documents:
  • Form 26
  • Copy of the FIR
  • Tax payment details for the past 4 quarters
  • Insurance certificate
  • An NOC by the financier
  • A valid Pollution Under Control Certificate (PUUC)

Yes, you can convert your RC book into a Smart Card if your RC book has faded printing, is soiled or is torn. To do so, you need to apply for a duplicate RC in the form of a Smart Card by submitting an application along with the following documents:
  • Form 26 (2 copies)
  • Original RC
  • Identification proof
  • Address proof
  • Chassis imprint
  • Insurance details
  • PUC details

For your RC book online download, you need to follow the steps mentioned below:
  • Visit https://digilocker.gov.in/ and register yourself.
  • Under the tab ‘Issued Documents’, select Ministry of Road Transport and Highways
  • You will be redirected to a new screen, where you need to select ‘Registration of Vehicles’
  • You will then be prompted to enter your Registration number and your Chassis number.
  • On submission of the above details, you will then get the RC, which you can download in different file formats under the ‘Issued Documents’ tab.

In order to remove hypothecation from your RC, you need to visit the relevant RTO with the following documents:
  • NOC from the financier
  • Form 35 (2 copies)
  • Original registration certificate
  • Aadhar Card
  • Insurance policy
  • Pollution Under Control (PUC) certificate
  • Passport sized photographs
  • Driving Licence
  • Payment receipt copy (if paid online)
You need to get your documents verified by the RTO officer, obtain and sign an Acceptance form, and then make payment for your new RC smart card. You will then be given an appointment to come and collect your new RC from the RTO.

To check your vehicle RC status online through the Parivahan website, you must follow the below mentioned steps:

Step 1: Visit the Parivahan Sewa Portal at https://parivahan.gov.in/parivahan/
Step 2: Click on the ‘Online Service’ section
Step 3: Select the ‘Vehicle Related Services’ option
Step 4: From the drop down menu, select the state where the registration certificate has been applied from.
Step 5: Enter your vehicle registration number
Step 6: Select the ‘State RTO’ from the drop-down menu
Step 7: Select the ‘Status’ option from the menu on top of the page and click on ‘Know Your Application Status’ option
Step 8: Enter your application number, the captcha code and click on Submit.
Step 9: Select the ‘View Report’ option.
After the above steps are done, you will be redirected to a page with all the details about your RC application and its status.