Paid Off My Car Loan. What Next?
It was a moment of pride when I bought a car for myself in Kerala, India back in 2012. I paid off my car loan from a financial company a few months back but the whole process of hypothecation cancellation intimidated me so much that I did a full thorough research on the Internet before proceeding further. Some online posts did not answer my questions completely even if they were fairly detailed. This article is an attempt to help everyone in Kerala breeze through the car hypothecation cancellation procedure.
Please note, the car hypothecation cancellation procedure, though more or less the same, might vary for each RTO. I had done this from Ottapalam RTO.
Disclaimer: This article is an account of my own personal experience back in 2015. The fees and steps might have varied a bit since then. Please also read the comments below from readers who have helpfully provided the latest updates about the process.
What Is Hypothecation and Hypothecation Cancellation?
When you buy a car on a loan, this fact is marked on the Registration Certificate (RC) of your car. This is known as hypothecation. When you fully pay off your loan, you want this fact to be removed from your RC, to claim complete ownership. This is termed as hypothecation cancellation.
Step 1: Collecting NOC, Form 35, Confirmation Letter from Financial Company
Once your loan payment is complete, the next step is to obtain an NOC (No Objection Certificate) from your financial company (which might be a bank in most cases or a private company in my case).
The financial company will also provide 2 copies of Form 35 (Hypothecation Cancellation Form) and a confirmation letter along with the NOC. Keep these documents safe. The NOC (which is a certificate that implies the financial company has no objection to you claiming complete ownership of the car now that full loan payment has been done) along with the Form 35 documents and confirmation letter need to be submitted at RTO.
In summary, ask for these documents from your financial company as soon as you complete your loan payment:
- NOC (No Objection Certificate)
- 2 signed copies of Form 35
- Confirmation letter
Step 2: Applying Online and E-Payment
A hypothecation cancellation fee of Rs. 175/- (this was in 2015; fees might vary now) can be paid online from http://www.keralamvd.gov.in/ website. You need to print out the receipt and keep it along with other documents (more on this in next section) which are to be submitted at RTO.
Please note, once you make payment, you are supposed to visit the RTO within 3 working days. So plan your visit to RTO on a suitable day and pay fees accordingly beforehand.
As I was unaware of the website, I visited the RTO without making online payment. They asked if I had applied and made online payment and I said no. So they suggested I do this at a nearby Akshaya center. The Akshaya center in Ottapalam is just opposite the RTO building. On this note, I have to say that the people at Akshaya which I visited were the most obnoxious and least friendly people ever. I was instantly put off by their “mightier than thou” attitude. Might not be the case in all places but it made me wish I had known about the http://www.keralamvd.gov.in/ site earlier.
If you make payment at an Akshaya center, you will also be charged Rs. 25/- extra as service fees. So totally you will have to make a payment of Rs. 200 at an Akshaya center for hypothecation cancellation application and e-payment.
How to apply for hypothecation cancellation online:
- Go to http://www.keralamvd.gov.in/.
- On the right side of the page, in ‘Apply Online’ section, click on ‘Vehicles’.
- Click on ‘Apply Online’ for ‘Cancel Hypothecation’ option.
- When you click on this, your browser might alert you about a security issue. In Chrome browser, you can surpass this by clicking on ‘Advanced’ link and ‘Proceed to smartweb.keralamvd.gov.in (unsafe)’. It is perfectly safe, do not worry.
- Select RTO, enter Reg. No. and last 5 digits of Chassis No.
- Click on Go button and complete the application process.
- Note down your application number.
How to make payment online:
- Once you apply for hypothecation cancellation and have noted down application number, click on ‘E-Payment’ in ‘Apply Online’ section.
- Click on ‘Apply Online’ for ‘e-Pay your application’.
- Select ‘Cancel Hypothecation’ option.
- Enter the Application Number in the text box given.
- Click on ‘Pay Now / E-Receipt Print’ button.
Print the fee receipt and keep it safe. As mentioned before, once you make payment, you need to submit the application documents within 3 working days.
In summary, once you receive the NOC & other documents from financial company:
- Apply for hypothecation cancellation online at http://www.keralamvd.gov.in/.
- Note down the application number.
- Make payment of Rs. 175/- online.
- Print the fee receipt.
- Visit RTO within 3 working days.
- Visit a nearby Akshaya center.
- Ask them to apply online for hypothecation cancellation and make payment online.
- Pay around Rs. 200/- (out of which Rs. 25/- is Akshaya’s service fee).
- Collect fee receipt and keep it safe.
- Visit RTO within 3 working days.
P.S: The rates shown here are of the year 2015 when I had gone through the process. Fees might vary now.
Step 3: Create a Checklist of Required Documents
In my experience with government companies, I have noticed that they are very vague when providing information through phone calls. You might not get all required information with just a single call. Worse, you might have to make multiple trips to the establishment again just because they skipped informing you about submitting a particular document.
If you are pressed for time like me (I am temporarily residing in another city 1 hour away from the place my car was registered) and cannot afford to take multiple trips to the RTO, make phone calls to 2-3 RTOs in your state to get a thorough understanding of which all documents need to be submitted. This helps you to finish off the whole procedure in just one visit to the RTO.
I initially called up Thrissur RTO and they told me which all documents need to be submitted but when I called up Ottapalam RTO they provided more in-depth details. One mistake I did was not ask for their work timings. So I ended up going to the RTO for hypothecation cancellation process on a Saturday, which is when they chose to tell me that the department responsible for hypothecation cancellation does not operate on Saturdays! More reason to do thorough research before you visit the RTO since the hypothecation cancellation department operates only on working days plus you wouldn’t want to take leave from office multiple times.
Mostly, you will need to submit the documents on a working day (Saturday excluded) between 10 A.M and 1 PM.
The documents you need to submit at RTO are:
- Online application fee receipt
- NOC (No Objection Certificate) from financial company
- 2 signed copies of Form 35
- Confirmation letter from financial company
- Original RC (Registration Certificate) of your car
- Original Car Insurance
- Original Pollution Certificate
In many websites, it is shown you need to provide attested copies of RC, Car Insurance and Pollution Certificate. This is not true for RTOs in Kerala. You do not need attested copies (unless you need an address change in RC for which you need to submit an additional Form 33 and attested copies of ID proof showing new address). In my case, I did not need an address change, hence the above listed documents were enough. It is also advised to keep copies of your RC, Insurance and Pollution Certificate in your car till you get the originals back.
In summary, after you obtain NOC and other documents:
- Call up the RTO where your car was registered
- Verify if the above documents are all you need for hypothecation cancellation
- Ask for working days and timings of hypothecation cancellation department (very important)
Step 4: Purchase Covers with Stamps
Next up, you need to purchase 2 covers with stamps:
- A big RC cover with a Rs. 40/- stamp
- A small envelope with a Rs. 10/- stamp on it
These covers with stamps on them are readily available in any stationary shop near RTO. So I would advise you to purchase them from a stationary shop nearby RTO rather than buy them individually from somewhere else.
In the RC cover, you need to write down your present address. The RTO will send the new RC (after hypothecation cancellation) along with the originals of insurance, pollution certificate to you in this RC cover. Since I am temporarily based in a different address from the one shown in RC, I asked the RTO if I could write the new address instead on the cover. They agreed provided I would be there personally to receive the RC.
In the small cover, write down your financial company’s address. The RTO will send a letter to this company informing them that the hypothecation cancellation process has been duly completed.
In summary, after creating a checklist:
- Purchase an RC (Registration Certificate) cover with Rs. 40/- stamp on it.
- Write down your present address on RC cover with correct pin code and contact number
- Purchase a small envelope with Rs. 10/- stamp on it
- Write down your financial company’s address on it with correct pin code and contact number
Step 5: Arranging Documents
Clip together all required documents, including the RC cover & small envelope, with the fee receipt right in front. This allows the RTO to process your application quickly.
I had arranged the documents in a file as per an article I found online. I realized, at the RTO, this was not needed. They will not take the file but will require you to clip (staple) together all the documents.
Step 6: Visit RTO
Only thing left for you to do now is visit the RTO and submit the documents. They will provide you a tracking number. In case you want to check the progress of your application, you can call up the RTO and provide them with this tracking number.
My visit to Ottapalam RTO was a hassle-free one. The people were friendly and there were a lot of agents in there who (without expecting any monetary rewards) helped me out.
Once submitted, it will take around 10 days for you to receive the RC along with originals of pollution certificate and insurance. It might take longer if an address change is required.
In summary, after paying fees and organizing all documents:
- Visit RTO
- Submit documents
- Receive tracking number
- Wait for 10-15 days for RC and other originals
Dealing with Agents
If you come unprepared to an RTO (maybe just for an enquiry on hypothecation cancellation), there will be agents around who will try to lure you into using their services for a nominal fee (around Rs. 1000/-). They might tell you that the Akshaya center is crowded and you might have to wait for a long time to pay fees. Pay no heed! The Akshaya center I visited was not crowded at all. I was in and out of the center within 10 minutes.
A lot of people use the services of agents as well. All you have to do is submit your documents and they will take care of the rest. But I preferred to go about the hypothecation cancellation process myself. Using an agency’s service is more cost-effective, though, if you have to make a long distance trip to the RTO.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
Questions & Answers
Question: If the submission of documents to the RTO where the vehicle is registered is compulsory, would it be possible to do the same at all the RTOs in Kerala?
Answer: Documents must be submitted to the RTO where the vehicle was registered. I called up the Thrissur RTO to ask the same in 2015 and asked them if it was possible to do this in Thrissur instead of the Ottapalam RTO and they said it's not. I am not sure if the rules have changed now, though.
Question: Was there ever a need to submit a handwritten letter?
Answer: No handwritten letters were submitted by me in 2015 when I went through the procedure, but I'm not sure if it's required now.
© 2015 Kalpana Iyer
Thank You for Reading! Any Latest Update You Would Like to Share?
anand on August 13, 2020:
Thank you so much. Your detailing was to the point. Got my new RC yesterday. I had registered my vehicle at Palakkad RTO office and every thing went smoothly. Kudoos to you & RTO Office Palakkad..!
I am currently working at Thrissur. So I uploaded my documents and registered my application from Akshaya centre,Athani. The cost for registration now is 85/-rs and Akshaya service fee is 115/-rs. So a total of 200/-rs was paid at Akshaya centre.
Some changes to be noted..
1)Confirmation letter from Bank or Finance agency is not needed now. You need Form35(2 nos.) & NOC only.
2)Big RC envelope to be affixed with 42/-rs worth stamps & small document envelope with 26/-rs stamps respectively.
once again, thanks a bunch..
anand on August 10, 2020:
Thank you so much for the information_very precise..
Princzainz on June 29, 2020:
Excellent article for dummies like me who is not aware of time consuming unncessary proceedures for the simple work get done in Kerala. In the gulf if you want to buy , sell or transfer your car you need only 15 minutes. Approach the Traffic Department approved agent with one prerequisite claiming no traffic violation in ticket is in pending , otherwise park your car hand over the key , surrender RC book or vehicle registration card, sign sale or purchase or trasfer documents with valid insurance and wait for 15 minutes to get OTP from traffic department ; reveal the OTP to the agent and that is it i. Every thing is done in a single sitting ; sale purchase and transfer confirmation will be received on your mobile. With in fifteen days collect the new ownership certificate from traffic department. It's like ALAUDDIN WITH MAGIC LAMP . Hope our next generation would have this facilities in our country
Jose Antony on March 13, 2020:
I am on the way to buy a used car which is only 6 months old and hypothecated to a finance company. I would be obliged if someone could advise me the transfer procedure step by step considering the latest rules. Infact the car is registered in a different RT Office.
Vivek on March 03, 2020:
Great Article, thanks a lot...exactly what I was looking for (y) Appreciate your effort to detail it out here
Ramdas on February 13, 2020:
Thank you my friend for the information.this article helped me a lot and made the process easier
Arun on December 17, 2019:
I got it done today from Malappuram RTO.
This article helped a lot. The fee is RS 85 now.
Thanks a lot for the briefing.
Mammadu K on August 01, 2019:
Today I submitted application for cancelling hypothecation at SRTO,Thirurangadi. Requirements are:
1. NOC from the bank/financier concerned
3. Photo copy of Valid Insurance
4. Fee payment receipt (Pay online Rs 85 only)
5. Two envelops of different size (Large one for RC - self addressed and stamp affixed for Rs 42. The other one small - addressing the bank/financier, stamp affixed for Rs 22)
They didn't ask for the pollution certificate.
That's all. They said it would take 10 days approx to receive the new RC.
apurva on July 18, 2019:
thank you so much for the above information.i also stay in a different city and have to go to calicut for the process. i wanted to know is it needed to take my car along for all this process. will rto ask me to show my car for inspection?
Manikandan on July 12, 2019:
Thank You, its very helpful.
Rajeesh on June 11, 2019:
Now fee is 85 rupees..
Nisar on May 21, 2019:
Thanks a lot for the details. I followed your instructions and filed my application last week. But, there is one thing that has changed. The amount of stamp required for the return covers has changed. We need to have the following amounts instead.
A big RC cover with a Rs. 40/- stamp (addressed to yourself)
A small envelope with a Rs. 25/- stamp on it (Addressed to the financial institution)
Please update your blog post with this update.
Akshay Prakash k on April 28, 2019:
Thanks...god bless you...
renjith on April 21, 2019:
Dr Karthika Ramesh on April 19, 2019:
Its really useful and can understand easily in correct order.. minute things also you explained.. thank you for that
Manu on April 12, 2019:
Very very helpful.. Your instructions were very accurate ... saved me from great hassle.....God bless you..
YOOSUF on February 02, 2019:
One of Agent told me to pay Rs.550. But I tried through website, it is asking only Rs.50 service charge. I am totally confused
HARIPRASAD on January 19, 2019:
Thank you so much.
Nikhil Palakkad on December 23, 2018:
That was very helpful indeed..
Jobin on December 19, 2018:
Nice post! Really useful. I owe you one for this.
Pradeep, Shoranur on October 29, 2018:
Very helpful information . thanks
Shafi. K on October 09, 2018:
Awesome article. Detailed and clear. Thank you.
Kiran on October 02, 2018:
Great article.. thanks..
Sunil Kumar on September 27, 2018:
Very helpful information.. Thanks for sharing.
Ragesh on August 07, 2018:
Thank you so much for the detailed description.
Was able to submit the form at Kazhakuttom RTO.
Fee was 75. I don't know the reason. Mine was less than 1 year old. So no pollution certificate. its very easy to pay on MVD site than going to Akshaya. Form 35 was given by bank itself. So no filling was required than signing. NOC and confirmation is given as a single paper. Waiting to receive the RC and insurance by Mail
Dipin on July 18, 2018:
Very helpful indeed.
I was in search of these actually.
Agents take rs 1000 around, but actual charges is 75 only ( bike)
So go to any akshaya center not to any agents
Prince Varghese on July 14, 2018:
Greate article.....and great help.... feel I walked with you for the entire process
Unny on June 01, 2018:
Thank you for the much detailed information.
Vibin PB on May 10, 2018:
Thank you brother..
It was very helpful..I was planning to go for hypothication temination on saturday, and also not aware about the online bill payment.
Now all the docs are ready with me, and planning to go tomorrow to RTO.
Thanks for the helping article..
Deepu on April 19, 2018:
SHAFEEQ on March 04, 2018:
Very Helpful brother. Thanks for the info.
srini on February 08, 2018:
Thank You for all the pain you have taken for writing such a fantastic write up on the whole process...
Rajeev Attingal on February 02, 2018:
Very much informative, Keep going.
Alex on January 23, 2018:
You are an angel!
Linson on January 06, 2018:
Splendid supply of information. Just what I was looking for, and only more detailed. Bookmarked for reference and sharing. Thank you very much for the post.
keeru on December 11, 2017:
helpful but when I went to RTO (Kazhakootam, Trivandrum) today, they did n't accept my form, told me its only accepted before 1pm on working days except Wednesdays in which they never accepts. :(
Dr mahesh babu on December 08, 2017:
Very helpful information
Vipin Vijayan on November 23, 2017:
Thanks a lot for the post sir.
For bikes, fee is 75/- Rs only.
We can do the payment as shown above.
We need submit original RC book along with original pollution certificate , original insurance certificate, NOC paper, 2 form35 and submit it directly to RTO office.
MATTHEW on November 19, 2017:
THANK YOU FOR THE INFO WAS SO HELPFUL
E.R.GANESAN on November 10, 2017:
Thanks for the informative message
AZARUDEEN on November 01, 2017:
Your post has been very helpful to me and I have completed the procedure .The people in the Kayamkulam SRTO were cooperative and in case you don't have paid the fee online you can deposit the money at the office counter
Sreeraj on October 10, 2017:
Thanks for the info
Sandeep on October 06, 2017:
article.Thanks very much
beegees on October 04, 2017:
very useful and procedures to follow are well described,,thank you so much.
jerin on August 29, 2017:
I recently did this..some minor changes are there, only 75/- rupees need to pay online, not 175/- and need to give only one envelope with Rs 41/- stamp on it..not Rs 40/-
No need of giving additional envelope with Rs 7/- make sure that in the letter given by bank, vehicle number is enclosed
Shibu J on August 06, 2017:
Thanks for this. Helped immensely. The person at the RTO office actually asked me where I got the information to attach the the envelope for the financier and remarked that a most people have to go back to get it done as they do often turn up without it.
madhukumar N on July 10, 2017:
very useful, thank you.
Vinod, Nandavanam on July 01, 2017:
Excellent, Very informative, thanks for sharing
VJ on June 04, 2017:
Excellent post, thanks much !
firstname.lastname@example.org on May 25, 2017:
well described. thanks a lot.
Nafih on May 21, 2017:
Thanks.... its very informative... I think this is the only article abt the procedures in state of Kerala... but I have one doubt,, is it necessary to be present in person before RTO if it is doing with the help of any agents... bcz I dnt have much time to visit the office... but if it is equally needed to present in person.. then I will do it myself... if anyone here knows, please make clear about this point too....
Anju on May 04, 2017:
Thanks a lot madam.
VJ on March 31, 2017:
Thanks!.. that's a great deal of info... I'm going to do this myself...
vijeesh on March 02, 2017:
thanks and very good information
Anoop on January 20, 2017:
Excellent post, thanks for sharing.
Samson on November 28, 2016:
Very well written, excellent.
Sharvinzlife on May 26, 2016:
Great info @Kalpana Iyer. I was looking online how do I cancel the Hypothecation , visiting the Akshya center was little hassle since there is always a big queue. I couldn't find the link for the online payment in MVD website of Kerala, even I did a search within website through Google and used the search feature on the MVD website too couldn't find it. But this article gave in depth information about all. Thanks for the great post !
sreekanth on September 13, 2015:
Chitrangada Sharan from New Delhi, India on August 28, 2015:
Very informative and helpful hub about Car Hypothecation and cancellation in Kerala. Its almost the same here also.
Thanks for sharing!