How to cancel hypothecation from RC Book - Steps to follow in RTO Gujarat


This article is about the process of removing the hypothecation of bank name or finance company name from the RC book of your two or four wheel vehicle. The process described here is for Gujarat State RTO, the process could be same or different for different state.

I have purchase my Maruti Suzuki Ertiga VDI in October 2013 with finance help from State Bank of India. The overall process of getting car loan sanctioned from SBI was quite smooth for me as I was having all my documents in order as required by the SBI Bank. So I was lucky enough to get my car loan sanctioned of on the same day of the application. The amount that I opted for the car loan was Rs 3,00,000 and the car loan tenure was 3 years.

Any vehicle which is bought with the help of finance company then the RC book that comes from RTO will have hypothecation mark on it with the name of finance company from which it is financed, and this hypothecation should be removed once the loan is fully paid or the loan tenure is completed or you close the loan account. I have completed my loan tenure of 3 years and closed my car loan account in September 2016, so I have to now complete the process of removing hypothecation from the RC Book.

As a net savvy I have started surfing over internet to know what are the steps and procedures to remove the hypothecation from the RC book in Gujarat RTO. I have got many articles listed on my google search on how to remove hypothecation from the RC book but those are for different RTO like one is for Pune RTO and other article which I read was for Delhi RTO, but since I am from Gujarat I have not found any information for Gujarat RTO so I was still under dilemma of how should I go for this. I am a kind of person who do not get things done with the help of agents may it be getting a Passport or License or even the Car Loan that I took from SBI, all the work was done by myself without any agent. When I discussed this requirement with my cousin he told me that if you go to RTO then it will be a waste of half day or so and you will end up finding the right window for my work so better ask any agent to complete the procedure for you, the agent will take around Rs.750- Rs.850 for this work and you will be tension free to roam around the windows in RTO office. But, I did not listened to him and went directly to RTO Gujarat which is at Subhash Bridge.

Here are the step by step information on how to remove "Finance Company Hypothecation" from your RC book, once the loan period is over.

Step 1: Getting valid documents from the Bank / Finance Company


Once you complete your car loan tenure or you close the car loan account from your bank or financial institution, you will have to collect following documents

  1. Bank Letter stating Closure of Loan which is nothing but the NOC or No Due Certificate - Standard format on their letterhead. As my car loan was from SBI bank they are giving only one original copy of the NOC Certificate but it vary from bank to bank. I have done xerox of the same and kept 2 copies with me.

  2. Once you receive the NOC from the branch from where you have taken the car loan then you will have to approach the Retail Assets Central Processing Centre (RACPC) branch of that bank or financial institution and get the two copies of Form -35 which is the form to be submitted to RTO for getting the hypothecation removed from the RC book. Please note that the NOC is valid for 3 months from the date of issue so you will have to complete this all process within this time other wise your NOC will expire and you will have to get new NOC from the bank.

  3. Once you are in receipt of these documents, it is recommended to get some extra copies made for your records.


Step 2: Submitting your application to RTO Office


As I am from Ahmedabad Gujarat location, I have visited RTO office located at Subhash Bridge. Since this is the first time I am going for this work so I reached the RTO office little early by 10AM. I entered from gate where there is a Public Telephone booth. Once you enter the office, you'll see a lot of windows with clearly marked numbers on them. I roamed around many windows and started asking questions to people as what needs to be done. I did not hear any satisfactory answer from anyone and then finally I decided to go inside the office in the right side written as Single Window Office and asked a person over there who told me to wait outside near the desk and verify the documents.

You need the following documents to complete your application verification:

  1. No Objection Certificate (Original from bank)

  2. Form 35 (Both the copies, duly signed by yourself)

  3. Current running Insurance policy - Copy only

  4. PUC - Copy only

  5. Verification Form – Available from the Public Telephone Booth for Rs 1 which is a xerox copy of the simple form


Staple all the papers up together. Then,carry out the following steps to get the hypothecation removed from your RC book:

  1. Go to the Single Window Desk and get all the documents verified by an officer named Jagdishbhai, I remember the name as he is very kind person. He will ask you to get one verification form from the outside public telephone booth which cost Rs 1 which is a xerox copy so better you take this form first before you enter into the office to save time.

  2. Once verification done then he will send you inside to meet Mr Chaudhri who will enter the details and collect the Fees of Rs. 300 and give you the receipts for the same. The breakup of Rs 300 is Rs. 100 is the charge for cancellation of hypothecation and Rs 200 is the charge for new Smart Card.

  3. After payment of fees collect your documents back along with the RC book, attach the duplicate copy of the receipt with the documents and then go to Mr Rabari who will then enter the details in the computer to get the hypothecation removed and new smart card creation, so submit the documents and you are done.


I have completed all this work at 11.30AM this means I finished my work actually in less then 30 minutes time and saved Rs.450 if I have given it to Agent. I feel happy about this. Now I will have to wait for the new Smart Card RC book which will come in a months time as informed from RTO Office. Till then I will have to keep copy of my old RC book and the receipt of cancellation of hypothecation that was given by RTO Office to show it if any one asks for it.


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Comments

Author: NK SHARMA20 Oct 2016 Member Level: Gold   Points : 1

The process of removing the hypothecation of bank name or finance company name from the RC book of your two or four wheel vehicle.
1. Pay the loan amount to the bank/ finance company.
2.Take form-35 in duplicate.
3.Submit the application with original RC and form-35 to RTA office with registration fee say Rs 400 in case of car.
4.Get a slip from RTO for driving and police checking purpose.
5. After one week you will get new RC by post.



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