Purchasing a car has become easier than ever in India with the unhindered availability of vehicle loans. However, loans come with their own set of responsibilities, the most important of which is clearing the hypothecation at the earliest opportunity.
If you’ve taken a loan to buy a vehicle, the RTO Form 35 is a vital document to clear the hypothecation entry on your vehicle’s Registration Certificate.
Hypothecation is a formal agreement between a borrower and a lender, stating that if the borrower does not repay the loan in the agreed timeframe, the lender has the right to seize the asset purchased with the loan. For example, in straightforward loan agreements like car loans, the car itself serves as collateral. If the borrower does not repay the loan as per the terms, the lender can take possession of the car.
Read on to learn more about RTO Form 35, the official form that mediates this transaction process.
What Is RTO Form 35?
RTO Form 35 serves as a notice of termination of the agreement of hire-purchase/lease/hypothecation. This is the first step to documenting and legally establishing the fact that all terms and conditions have been met by the borrower, including the entire payment of the loan, and they are now fully the legal owner of the vehicle. This process removes hypothecation from a vehicle’s Registration Certificate and is especially helpful if you plan to sell your used car, bike, truck, etc., later to another buyer. If you are filling out the RTO Form 35 offline, this particular form must be submitted to the Regional Transport Office where the car is registered.
How to Fill Form 35
The vehicle owner and the RTO fill out relevant sections of the same form. It is important to note that both the vehicle owner and the financier are required to sign RTO Form 35 to legally change the status of their agreement. Thumbprints, signatures, or official seals—all are acceptable for this purpose.
Begin by downloading RTO Form 35 from your state's RTO website. Alternatively, if you prefer an offline process, you can visit the RTO office where your vehicle is registered. The form's fields might initially seem confusing, but here are some details to help simplify the process for you:
- RTO Form 35 can be broadly divided into two sections: the first pertains to details about the loan provider and the registered vehicle owner involved in the transaction with the lender, while the second provides a clear declaration of the termination of the financial agreement, including the date.
- The name of the Regional Transport Offices can be found on government sites.
- The form should include the complete name and address of the financier.
- The form must contain the registration number of the vehicle bought against the loan, as mentioned on its Registration Certificate. Accuracy is crucial to avoid discrepancies.
- Everything under the heading “Official Endorsement” is meant for the RTO, as the registering authority, to fill out. They will also provide a reference number.
- Submit the Form, either online or offline at the RTO.
Along with filling out the RTO Form 35, don’t forget to compile, carry, and submit copies of the following supporting documents:
- The original Registration Certificate
- The vehicle owner's identity proof, e.g. Aadhaar card.
- The agreement document (Hire-Purchase or Lease) between the borrower of the loan and the financier.
How to Download Form 35
If you are unable to visit the RTO office in person, check online. A simple internet search for terms like "RTO Form 35 [Your State]" can lead you to direct download links. While many websites offer quick download links, it's important to double-check these files against credible sources—official government websites are the most reliable.
The RTO of every state generally has a web portal; check the Parivahan Sewa website to be absolutely sure.
Simply run a website search for “Forms”, and you shall be directed to all the relevant information.
Conclusion
In India, vehicle owners who finance their car purchases must understand the hypothecation agreement and the process of legally terminating it using RTO Form 35. With the modernisation of government websites, downloading, filling, and submitting essential documents like RTO Form 35, along with the required paperwork, has become a straightforward task. Completing RTO Form 35 marks the official end of the hypothecation, granting you full ownership once the loan is repaid.
While managing loans is crucial, investing in car insurance online is equally important. This provides financial protection in unforeseen emergencies, helping you manage crises more easily. Ultimately, this protects your investment and allows you to drive worry-free.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.