Parivahan Sewa Portal
Parivahan Sewa
Parivahan Sewa Guide 🇮🇳
RTO Services Information Portal
Note: parivahanin.com is an independent information guide. We are not affiliated with the Government of India or any official RTO portal. For official services, visit parivahan.gov.in.

Remove Hypothecation from RC –
Cancel Car/Bike Loan (HP) Online

The complete 2026 guide to removing bank hypothecation (HP) from your Vehicle RC after closing your car or bike loan. Learn the Parivahan online process, Form 35 requirements, and RTO fees.

Table of Contents

What is Hypothecation (HP) on RC?

When you buy a car or bike on EMIs (using a vehicle loan), the vehicle is pledged to the bank or NBFC as security. This financial arrangement is recorded by the RTO on your Registration Certificate (RC) as "Hypothecation" (HP).

As long as the HP endorsement is active on your RC, the bank technically holds the ownership rights to the vehicle. You cannot legally sell the vehicle, transfer ownership, or scrap the vehicle without the bank's permission.

When should you remove Hypothecation?

The moment you pay off your final EMI and close your loan account, you should apply to remove the HP endorsement. Do not wait! Bank NOCs (No Objection Certificates) are usually only valid for 90 days from the date of issue.

Documents Required (Interactive Checklist)

Before starting the online process or visiting the RTO, make sure you have all these documents ready. Use this interactive checklist to track your progress.

HP Document Tracker

Saves progress locally

0/6

How to Remove Hypothecation Online via Parivahan

The Ministry of Road Transport and Highways (MoRTH) has digitized the HP termination process. You can initiate this from the comfort of your home using the Vahan portal.

1

Visit Vahan Parivahan Portal

Go to the official Vahan Citizen Service Portal. Select your State and RTO.

2

Select "Hypothecation Termination"

Click on "Online Services" > "Vehicle Related Services". Login/Register using your mobile number. Select "Hypothecation Termination" from the services list.

3

Verify Details via OTP

Enter your Registration Number and the last 5 digits of your Chassis Number. Validate via Aadhar OTP or mobile OTP linked to the RC.

4

Upload Documents & Enter NOC Details

Enter the NOC issue date and bank details as written on your physical NOC. Upload scanned copies of Form 35 and the Bank NOC.

5

Pay Online Fee & Book Slot

Pay the RTO fee (usually ₹200 to ₹500 depending on the state and vehicle type) using the secure payment gateway. Print the receipt and Form 35. In some states, you will need to book an appointment slot.

6

Visit RTO (If required)

In states that don't support completely faceless services, visit your RTO on the appointed date with the original documents and submit them to the RTO officer.

HP Removal Fees & Timeline

Vehicle Type RTO Processing Fee Smart Card RC Fee
Two Wheeler (Bike/Scooter) ₹200 - ₹300 ₹200
Four Wheeler (Car/Jeep) ₹300 - ₹500 ₹200
Commercial Vehicles ₹500 - ₹1000 ₹200

Note: Late fees may apply if you apply after the 90-day NOC validity period expires. If expired, you must request a fresh NOC from your bank, which banks usually charge ₹500 - ₹1000 for.

Processing Time

Once approved by the RTO, the HP is removed from the Vahan database almost immediately. You can check this online via RC Status Check. The physical smart card is dispatched via Speed Post and takes 15 to 30 days to arrive.

Why Remove HP Immediately?

  • You cannot sell the vehicle with active HP.
  • In case of total loss (accident/theft), insurance claim money will go to the bank.
  • Bank NOC expires after 90 days.
  • You cannot transfer the RC to another state.

Related Services You Might Need

Frequently Asked Questions

What happens if my Bank NOC expires?
If the 90-day validity of your bank NOC expires, the RTO will reject your application. You will have to visit your bank branch and request a fresh duplicate NOC. Banks usually charge a penalty/processing fee for issuing a duplicate NOC.
Can I remove hypothecation without visiting the RTO?
Yes, in many states (like Delhi, UP, Maharashtra), the process is completely "Faceless" if your mobile number is linked to Aadhar. You upload scanned documents and the RTO processes it online. However, some RTOs still mandate physical submission of original Form 35 and NOC.
Do I need to submit the original RC smart card?
If you are applying physically, yes, you must submit the original RC. The RTO will keep the old RC and mail a newly printed RC smart card (without the bank's name) to your registered address.