How to remove bank hypothecation from RC of vehicle?

 bank Hypothecation

How to remove bank hypothecation from RC of vehicle?

bank hypothecation:Bank loan provides us a great opportunity to Purchase our dream vehicle.

And most of the times we are unable to purchase a vehicle,so banks gives us some financial help .

So we are able to buy a car,bike etc.But banks charge interest from us.

Further when we buy a car,we get RC from car showroom.

So This RC of our car must bear Bank name as HYPOTHECATED TO SBI (say) untill you pay all amount of loan taken from your bank.

Why to remove Bank hypothecation:

Now suppose you have paid all your loan amount the next step is to remove bank hypothecation tag from RC of your car or any vehicle.

It is very important to remove it as you can not be a full owner of your car,you can not sell your car until you removehypothecation.

Steps to remove bank hypothecation:

Following are the most important steps to remove bank hypothecation which every car owner must keep in mind and follow.

Step-1:Get two copies of Form no. 35 Which is a form of Agreement of Termination of hypothecation.You can download this form from here

Now fill two copies of FORM 35 carefully.further visit your bank and take bank stamp on form 35.

Step-2:Get NOC (no objection certificate) from your bank.Two copies.

Step-3:Now for bank hypothecation removal the next step is to visit your DTO(District Transport Office).Pay govt fee, online there.

Step-4: Now get Affidavit Regarding bank hypothecation removal at Dstrict tehsil level.


  1. Form 35 two copies with bank stamp.
  2. Two  copies of NOC from bank.
  3. Original vehicle RC.
  4. Two copies of insurance policies.
  5. Three photos of yours.
  6. Pay online fee. for form 35.
  7. Copy of Affidavit.
  8. Visit DTO office.
  9. Submit your file and get receipt.
  10. wait for 15-20 days and visit again DTO office anr get your new RC without bank hypothecation.

Finally if you like this post then share with all your friends,And hence all will get benefit from it.Also read our other articles.

Also watch this video which will explain you how to remove bank hypothectaion.

Also read my other article PPF Account

Kuldeep Singh

is a professional blogger,teacher and income tax expert

Click Here to Leave a Comment Below 0 comments

Leave a Reply: