In general, individual often end up making this mistake that even after repaying their vehicle loan amount; they think it is over and all done after getting loan clearance certificate or NOC, but they are in for a rude shock, hypothecation cancellation should be done in the RTO office where the vehicle was registered to ensure ownership of the vehicle is completely transferred to cancel and bank or financial institution who lent the money for purchase of vehicle has no role or nothing to with vehicle ownership.
Hypothecation is pledging of an asset as collateral in order to secure the loan. The advantage to the lender is in case if monthly EMI is not paid on time, the lender can seize the vehicle and sell to it whomsoever they chose to. So it is absolutely important that once the loan has been repaid completely, that one should cancel the hypothecation through the RTO Hypothecation Removal Process.
Hypothecation cancellation for bike or any vehicle will gives you the complete ownership. To be frank, if you vehicle is financed then your vehicle’s RC would be named by the loan lender who provides the loan amount for purchasing your vehicle. RTO Hypothecation Removal Process in Bangalore will remove the lender’s name from your vehicle’s RC book and thereafter the vehicle will be fully owned by you.
The procedure for hypothecation cancellation in Bangalore is simple and can be done at nominal cost. Here are the lists of steps to follow to cancel your vehicle hypothecation.
You would need to pay prescribed charge towards hypothecation cancellation fee at the RTO counter. If one wants to change the address at the same time, you need to pay additional charges. With the arrival of hypothecation cancellation in online, things have made easier for owner to cancel their hypothecation, however, they don’t need to visit the RTO center in person for collecting the updated or new RC Smart card.
NotaryKart offers you the vehicle Hypothecation cancellation service for affordable charge and keep you out of running around and stress and worries. Our experts will take care of the hypothecation procedures to follow for cancelling the Hypothecation and delivers you the RC Smart Card at your doorstep.