RTO Hypothecation Removal: Online and Offline, RC HP Removal

What is Hypothecation or HP?

RTO Hypothecation Removal, Hypothecation is a situation in which an individual/ organization pledge their assets as security in order to secure the loan taken from the third party without actually giving up the ownership. An asset is hypothecated to secure a loan in exchange for its use as collateral. For example, whenever you take out an auto loan, you agree that your automobile will be used as collateral to secure the loan. If you cannot repay the loan, the lender can repossess your automobile.

RTO Hypothecation Removal

RTO Hypothecation Removal Explained

When the individual has paid his loan and the bank gives the written official letter stating that all amount of the loan is paid, then the RTO Hypothecation will be removed from the registration certificate. After receiving the letter from the bank, the individual has to submit the no objection certificate with Form no 35 at the Regional Transport Office (RTO) with two copies. The no-objection certificate is valid for three months only, so it should be submitted before it expires

RTO Hypothecation Removal Important Documents Required

  • Original Registration certificate.
  • Two copies of Form 35, self-attested.
  • Copy of Insurance Policy
  • No objection certificate from the RTO office.
  • Address proof.
  • Copy of Aadhaar Card
  • Latest address proof.
  • Passport sized photographs
  • Copy of PAN card attested, if the individual doesn’t have pan card then Form 60 & Form 61.
  • Fee receipt.
  • Copy of PUC

HP Termination From Vehicle Insurance Policy

The insurance company will mention all the information about hypothecation in the policy. The policy document will surely mention that the vehicle is hypothecated.  If the vehicle owner is planning to renew its policy with a different insurance company then also the owner has to provide all the information related to the vehicle whether it is under a loan or not.

After collecting NOC from the bank, submit it to the insurance company. This can be done by informing them on phone or you send a mail with the attached file of NOC to them. The owner can only sell the car after the removal of hypothecation.

RTO Hypothecation Removal

Offline RTO Hypothecation Removal Process

  • Visit the RTO office and make sure all the documents are checked and verified by the officer. After verification submits all documents.
  • In the RTO office, ask employees to enter all their details in the RTO Office database.
  • Next, staff present at the registration number series counter will give approval to all your details entered in the database.
  • Now, go to the payment counter to pay fees.
  • After this, an appointment will be given by the RTO office for the final approval of documents.
  • Visit the office on the given date and there you will receive an acceptance form so that you can go through the form to check the details.  
  • After signing the form, you have to give the form back to the RTO office.
  • Pay fees for the new RC and take a date for collection of the card.
  • After a few days, collect your updated RC.  

Online RTO Hypothecation Removal Process

Parivahan Seva
  • A homepage will appear on your screen
  • On the Homepage click on the online services tab
  • After this, click on Vehicle Related Services.
RTO HP Termination
  • Now select your State and your RTO office
  • Now, enter the vehicle number.
  • Now enter the chassis number and click on validate.
  • You will receive OTP on your registered mobile number. Enter OTP and click on submit.
  • After this, click on the termination of hypothecation box.
  • All details will be seen on the screen, check details and if asked for some other details then fill it.
  • Scroll up and click on the termination option and choose the date of termination of Hypothecation.
  • After that pay the fees.
  • After payment then print the receipt.
  • Don’t forget to print the owner’s details also.
  • Visit the RTO office with all documents and receipts and meet the officer to submit the documents.

 When documents will be approved and verified then Hypothecation from your vehicle will be removed. You will receive the RC card within a month.


Hypothecation can be removed offline as well as online. The individual can choose any option according to his convenience. If the borrower is unable to pay the loan then the lender will seize the assets and can also sell them. RTO Hypothecation Removal is very book because then only the ownership will be transferred to the original owner. After the termination of HP owner can sell his/her vehicle to anyone.


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