Independent guide by India Customer Care · Not the Parivahan government website · We never ask for your licence number, vehicle number, Aadhaar or OTP. Official services: parivahan.gov.in
Remove Hypothecation from RC After Loan Closure: Form 35
After you repay a vehicle loan, the bank's name stays on your RC until you remove it. Get the bank's NOC and Form 35 signed by you and the bank, then apply on VAHAN for hypothecation termination. The central rules charge no fee for this, though some states add service charges. Afterwards, ask your insurer to remove the bank from the policy too.
- Form
- Form 35
- From the bank
- NOC + signed Form 35
- Central fee
- None (states may add charges)
- Where
- VAHAN online
- After
- Update your insurance
On this page
What do you need from the bank?
Documents
- NOC or full-dues certificate from the financier.
- Form 35 (two copies), signed by you and by the financier with its seal.
- The original RC (or a scan for the online application).
- Valid insurance and PUC.
- Address proof, and proof of tax paid in some states.
The law sets no validity period for the NOC, but an RTO may refuse an old one, so apply soon after you get it. If the RTO won't accept it, ask the lender to reissue it.
How do you remove hypothecation on VAHAN?
YouBank / VAHAN / RTOCharges or waiting
- The bank gives the NOC and signs Form 35 after the loan is closed
- On VAHAN choose your state, enter the registration number and chassis digits, and verify the OTP
- Choose Hypothecation Termination and enter the financier and NOC details
- Upload Form 35 and the NOC, and pay any state charges shown
- Aadhaar authentication accepted?No: take the originals to the RTO
- The RTO cancels the entry and issues the RC without the bank
- Open VAHAN citizen services (or parivahan.gov.in → Online Services → Vehicle Related Services) and choose your state and RTO.
- Enter the registration number and the last 5 chassis characters, then the OTP sent to the RC's mobile number.
- Choose Hypothecation Termination.
- Enter the financier's name and the NOC details, upload Form 35 and the NOC, and pay any charges shown.
- If your state asks, book a slot and take the originals to the RTO.
✔ You'll know it worked when VAHAN or mParivahan no longer shows the financier on your vehicle.
Open VAHAN (official) vahan.parivahan.gov.in
Online, or online plus an RTO visit?
Contactless with Aadhaar
Under the Ministry's notification S.O. 4353(E) of 16 September 2022, many vehicle and licence services can be done online with Aadhaar authentication, on a voluntary basis. Where your state offers hypothecation termination this way, you don't need to visit the RTO.
Online application, then RTO visit
Some states still check the original documents. Book the appointment VAHAN offers, and take Form 35, the NOC, the RC and insurance.
How much does it cost?
| Service | Central fee (rule 81) |
|---|---|
| Remove hypothecation (Form 35) | No fee |
| New RC after removal | No separate fee |
| Add hypothecation (Form 34): motorcycle | ₹500 |
| Add hypothecation: car, three-wheeler | ₹1,500 |
| Add hypothecation: medium or heavy vehicle | ₹3,000 |
Some states list their own charges for termination; Puducherry, for example, shows ₹1,500 for a motorcycle and ₹1,650 for a car. VAHAN shows the amount for your state.
What should you do after the loan is removed?
- Insurance: send the updated RC and the NOC to your insurer, so the bank's name is removed from the policy.
- Keep copies of the NOC, Form 35 and the loan closure letter.
- The RC in DigiLocker or mParivahan should show no financier.
What can go wrong, and how do you fix it?
| Your situation | What it usually means | What to do |
|---|---|---|
| RTO rejects the NOC | The RTO considers the NOC too old | Ask the lender to reissue or revalidate it. |
| The bank on the RC has merged | The old bank no longer exists under that name | Get the NOC and Form 35 from the bank that took it over, with a letter linking the names; ask the RTO what it accepts. |
| The financier has closed down | No one to sign | Ask the RTO what it needs; no national procedure was found. |
| Loan closed years ago, no papers | The NOC was never collected | Ask the lender for a fresh NOC and Form 35. |
| No OTP | An old mobile number on the RC | Update the mobile number first. |
Frequently asked questions
Is there a fee to remove hypothecation?
No fee under the central rules. Some states add their own charges, which VAHAN shows.
Which form is used?
Form 35, signed by you and the financier.
How long is the bank NOC valid?
The law doesn't set a period. Apply soon, and ask the lender to reissue the NOC if the RTO won't accept it.
Can I do it online?
Yes, as Hypothecation Termination on VAHAN. With Aadhaar it can be contactless where the state allows.
Do I need to visit the RTO?
Only if your state asks to see the originals.
Will I get a new RC?
Yes, the RC is issued without the financier, with no separate fee.
Do I need to tell my insurer?
Yes. Send the new RC and NOC so the bank is removed from the policy.
What is Form 34?
It adds a loan (hypothecation) to the RC when you take one.
Sources
- Form 35 (Transport Department, Puducherry) and Puducherry – termination of hypothecation (accessed 25 Oct 2026)
- Transport Department, Chhattisgarh – hypothecation termination (accessed 25 Oct 2026)
- Transport Department, Andhra Pradesh – registration fees, Himachal Pradesh – rule 81 and Tripura – fees (accessed 25 Oct 2026)
- PIB – S.O. 4353(E), 16 Sep 2022: 58 services online with Aadhaar authentication (accessed 25 Oct 2026)
- National Portal – hypothecation termination (Bihar) (accessed 25 Oct 2026)
- Motor Vehicles Act, 1988 – section 51 (accessed 25 Oct 2026)
Page history: 25 Oct 2026: first published. 25 Oct 2026: sources limited to government websites.