Removing hypothecation from RC in Telangana has become an easier and faster process in recent years, thanks to the Telangana government’s RTA Department’s efforts to make all RTA services simple and easy. Hypothecation removal is an important process after loan termination, once the full loan has been repaid.
What is Hypothecation
Most Indians buy vehicles by taking loans from banks or financial institutions. This is because the cost of vehicles in India is relatively high, and many people cannot afford to purchase a vehicle outright. Most of go through loan option.
Hypothecation is when you take a loan, like for a car or house, and you give the bank the right over it as security. You still get to use the car or house, but if you don’t repay the loan, the bank can take it back. It’s pretty common here for loans like this, and once you repay the loan, the asset is fully yours again.
When you take a vehicle loan, the financier becomes the hypothecation holder of the vehicle. This means that the vehicle is legally pledged as security for the loan. Until the loan is fully repaid, the financier has the right to seize and sell the vehicle if you default on the loan.
Once you have repaid the loan in full, the financier will issue you a No Objection Certificate (NOC). This NOC releases the vehicle from the hypothecation and allows you to transfer ownership to yourself or another person.
Required Documents for Hypothecation Removal
Take the originals and one copy of all documents. The RTO will check the originals first and then take copies of all. After full loan repayment, the bank will issue a No Objection Certificate (NOC). With that, you can start the hypothecation removal process.
Required documents:
- Bank NOC (No Objection Certificate)
- Form 35 With Signature and Stamp of Financier and Owner(2 Copies)
- Original Registration Certificate (RC)
- Pollution Under Control (PUC) certificate
- Owner Any ID Proof (Aadhaar, Pan, Voter ID)
- Owner Driving Licence
- Owner Address Proof
How to Remove Hypothecation in Telangana
Procedure:
- Visit the official website of the Telangana State Transport Department.
- Click on the Online Services and Payments tab.
- Find on the Registration Section.
- Select the Hypothecation Cancellation option.
- Enter your vehicle’s number plate, the last 5 digits of the chassis number, and your mobile number.
- Click on the Request button to receive an OTP.
- Enter the OTP and click on the Submit button.
- Your vehicle’s details will appear.
- Verify the information and click on the Continue button.
- Enter the date and number of the agreement you signed.
- Upload necessary documents such as NOC and bank statements and others.
- Verify the information and click on the Save button.
- Slots will appear.
- Select a slot that is convenient for you and click on the Book button.
- Enter the payment details and click on the Pay button.
- If the payment is successful, you will see Slot Booked.
- Visit the RTO office on the booked slot with the required documents.
Process After Online TS RTO Slot Booking for Hypothecation
- Gather the Required documents:
- Visit the RTO where you registered your vehicle on slot date and time.
- Ask for the officer who will enter your details into the RTO computer system.
- Once your details have been entered, they will send you to another officer who will approve them.
- Pay the hypothecation cancellation fee at the hypothecation counter.
- Submit all of the copies of your documents to the officer who approved your details.
- The officer will give you a receipt and tell you when you can come back to collect your new RC card/book.
RTO fees for Hypothecation Termination in Telangana
- Motorcycle Rs. 600
- Light motor vehicle Rs. 1500
- Medium/heavy vehicle Rs. 3000
You can also contact a broker to complete this process. You will need to pay a fee of around ₹1500 to the broker.
RTOs in Hyderabad Codes:
- Rangareddy – TS07 ( Medchal)
- Hyderabad East – TS11 (Malakpet)
- Hyderabad West – TS13 (Tolichowki)
- Hyderabad South – TS12 (Kisanbagh)
- Hyderabad Central – TS09 (Khairtabad)
- Hyderabad North – TS10 (Secunderabad)
It is important to remove hypothecation from your RC after paying off your vehicle loan to avoid any issue in the future. The process is simple and straight forward, and can be completed at the RTO office where the vehicle is registered. Do it today and avoid any complications down the road