How to Cancel Vehicle Hypothecation (Tamil Nadu)

I closed my car loan earlier this year (around April actually!) and have been meaning to get this done for a while. But have been putting it off expecting it to take a long time. Finally today, as the year is almost coming to an end, I decided to just get it over with no matter how long it took. And it didn't much time at all!!

I wanted to get this done myself after finding out earlier this year that a visa agent was charging Rs.11,000 when I could do it myself for Rs.8500!

After checking with a few friends, I found that many are yet to complete this process, or went through agents for this. But we can do this ourselves!

So here are the steps:

When does this have to be done

• When the vehicle loan you've taken is paid off to the bank
• And the bank has acknowledged the same by giving:
• No Dues Letter
• Form 35 (2 Copies)
• Letter acknowledging the request for Hypothecation

Documents required to be submitted:

1. Registration Certificate - RC Original (Keep a copy for your car or bike)
2. Form 35 from bank- both copies (Original) (Notice of termination of agreement with the bank)
3. No Objection Certificate - NOC from the bank (Original)
4. Copy of Current Insurance Certificate of the vehicle
5. Copy of Pollution under control Certificate (Pollution certificates can be obtained from petrol bunks close to the RTO mostly, some others as well
   

Fees:

Rs.125 (in 2016)

Steps:

1. Data Entry
• Go to the data entry counter and tell them you need to cancel hypothecation
• The person will check if you have all the documents required
• They will update the details of your current insurance
2. Cash Counter - Payment
• Pay at the cash counter (closes at 12:30 pm)
• When you tell the person it's for cancellation of hypothecation, they will tell you how much
• The receipt will have 2 halves
3. Sticking
• Stick the left half receipt copy to the first copy of the Form 35
• Check with people at the counter for exactly how if required
4. Tapal / Postal Counter
• All the documents have to be finally submitted at this counter
• Original RC
• NOC Certificate from Bank
• Form 35 with receipt stuck
• Second Form 35
• Copy of Insurance Certificate
• Copy of Pollution Control Certificate
• Keep the other copy of the receipt with you
• Make sure you have a copy of the RC for your vehicle during this process
5. Collect updated RC in 5 working days (They will give you the date and time)

I went on a weekday morning at 11:00 am.

The whole process took less than half hour, the only place I waited a while was at the cash counter queue. 

Everyone's really helpful. There were 2 people at the entrance till 12:00-noon giving people directions. 

That's all!

Pretty darn simple :)