How to Remove Hypothecation Online?

Updated on 27-03-2025

In the realm of vehicle ownership and financing, the process of hypothecation removal from the Registration Certificate (RC) holds significant importance. Hypothecation is a term used when a vehicle is purchased with the help of a loan from a bank. The lending institution has the right to the vehicle's ownership until the loan is fully repaid. It is indicated in the vehicle's Registration Certificate (RC) through an endorsement of HP. Removing hypothecation from the RC signifies the completion of loan repayment and grants the owner complete ownership rights. One common question that arises can we remove hypothecation online? Yes, you can remove hypothecation online.

In this blog, we will learn the step-by-step process of hypothecation removal in RC online. 

What is Hypothecation? 

Hypothecation is a legal agreement in which the lender (generally a bank) holds your vehicle as a security for giving you a loan. During the loan tenure, your automobile will be under the lender’s ownership. After the loan repayment, you need to update the records of your vehicle and remove the hypothecation. 

Documents Needed to Remove Hypothecation

Essential Documents for Car Hypothecation Removal:

• Original RC
• RTO copy of NOC
• Copy of your Driving Licence
• Copy of the Pollution Under Control certificate
• Copy of your car insurance policy
• Self-attested copies of Form 35
• Loan Closure Certificate 
• Receipt for the hypothecation removal fee payment 

How to Remove Hypothecation in RC Online?

If you are wondering if can hypothecation, be removed online, the answer is yes. Here's a detailed breakdown of the procedure for removing hypothecation online:

Loan Repayment: Before initiating hypothecation removal, ensure you have fully repaid the car loan, including any outstanding interest and charges.

Document Verification: Gather the necessary documents, including:

• Loan closure letter from the lender
• No Objection Certificate (NOC) from the lending institution
• Original RC (Registration Certificate)
• Valid identification proofs, such as an Aadhar card or passport

Follow these simple steps to remove hypothecation from your RC: 

• Log in to the Parivahan Portal 

• Visit the Parivahan Sewa website
• Select your state and go to “Online Services”

• Submit Hypothecation Removal Application 

• Choose “Apply for Hypothecation Removal.”
• Enter vehicle details (RC number, chassis number) 

• Upload Required Documents

• Scan the documents listed above and upload them.

• Pay the Fees

• Make online payment (fees vary from state to state)

• Submit Application 

• Complete the process by submitting the application. 

• Visit RTO (if needed) 

• If your state requires physical verification, visit RTO 

• Track Your Application 

• Go to the “Application Status” tab on the portal to check the process of removal. 

Upon successful verification, the RTO will issue an updated RC, indicating hypothecation removal. This new RC will reflect you as the sole owner of the vehicle.

How Long Does Hypothecation Take to Remove?

Hypothecation removal takes 7 to 14 working days. The time taken differs based on:

• Efficiency and speed of the RTO in your state
• Completion of document verification 

How to Check if Hypothecation Has Been Removed from Your Account? 

Once you have submitted the documents and fees, it is crucial to verify the removal status. 

1. Check the RC Status on the Portal 

• Use the “Vehicle Registration Details” option in the Parivahan portal to check your records.

2. Download the Updated RC

• After approval, download the updated RC, which reflects you as the sole owner of the vehicle.

3. Visit the RTO (if needed)

• Get a hard copy of the latest RC, if necessary. 

Conclusion

Can I remove hypothecation from RC online? Yes, you can and it is extremely easy and user-friendly. Removing hypothecation from the Registration Certificate (RC) following the closure of a car loan is a pivotal step that grants vehicle owners complete ownership rights and financial independence. This single process ensures that you can claim benefits if you are applying for car insurance online and makes it free from encumbrances, enhancing its resale value and simplifying future transactions. By diligently following this procedure, individuals can secure unobstructed ownership of their vehicles, thus reaping the benefits of their financial prudence and commitment.