There was hypothecation on my car which I repaid 2 years back . I got loan closure letter from the bank. The validity of it is expired. Can I apply for hypothecation termination with this expired paper ?

Ans : To apply for vehicle hypothecation cancellation, in general loan closure should be valid. Some RTOs accept expired loan closure letter . For detail info on this Pls speak to our team they will guide you.  

​My vehicle which is registered in Chennai is under hypothecation . Now I want to apply for NOC from Chennai to Mumbai . Do I need to close the loan first ?

Ans : If vehicle is under finance from bank, consent from the bank is mandatory to apply for vehicle NOC. There can be two possible scenario. Either you can close the loan and can get the NOC from the bank for loan closure or you can manage to get the work done with Loan continuation letter from the bank.  In this case you will have to take NOC from bank which is also called loan continuation letter. On the basis of this letter from bank, RTO will issue NOC .

I want to sell my car. There is loan on the vehicle. Can I sell the car without clearing the loan ?

Ans : No. Car can not be sold if there is loan running on the vehicle. Before selling it , you will have to clear the loan first.  

I have lost RC of my car. There is hypothecation on my car. Do I need consent from bank while applying for duplicate RC ?

Ans :   To apply for duplicate RC, consent of bank is required on form 26, if vehicle is hypothecated to the bank.

Can I cancel my hypothecation online?

Ans : Process for hypothecation cancellation is not online completely. RTO fees can be deposited online. Application along with supporting documents needs to be submitted online. 

However, process of Itzeazy is completely online and can be availed in just few clicks. 

What is HP termination?

Ans : When you re-pay your vehicle loan fully, bank gives you loan closure letter & set of form 35. These documents needs to be submitted to the RTO. After that RTO removes hypothecation from vehicle record and gives you new RC. This process is called HP termination.

How do I cancel my HP on my two wheeler?

Ans : Following are the steps to terminate hypothecation from two wheeler :

  1. Collect loan closure letter from the bank
  2. Submit application for HP termination in the concerned RTO along with supporting documents
  3. Deposit requisite RTO fees 
  4. Application processing and HP termination done
  5. New RC issued  

​Is it necessary to remove hypothecation?

Ans : Removing hypothecation from RTO record is necessary for 2 reasons :

  • NOC letter for hypothecation termination issued by bank is normally valid for 3 months period. If you don't finish the task at RTO within three months, you will gain have to request bank to issue NOC. 
  • Without removing hypothecation you can not do any transaction in the RTO such as RC transfer, NOC for other state, Duplicate RC etc.

So, its advisable to remove hypothecation from RTO record once you close the loan. 

​Is it possible to remove hypothecation online?

Ans : Government process for hypothecation removal is not online completely. Application can be filled up online . RTO Fees can be deposited online. Forms and supporting documents needs to be submitted physically to the RTO. However, Itzeazy provides online service for hypothecation removal from RC in Pune and Pimpri Chinchwad area .    

What are the documents required for hypothecation termination?

Ans : Following are the documents required for hypothecation termination :

  • 2 Nos. of Form 35 duly filled & signed
  • NOC from the financier for having retained full dues from the financier (for HP termination case only)
  • Original RC
  • Copy of Valid insurance
  • Copy of valid pollution under control certificate
  • Copy of address proof of the registered owner

How do I check my hypothecation status?

Ans : Following are the steps to check status of hypothecation :

  • Visit the website
  • Click on the link - Informational services
  • Select the  option - know your vehicle details
  • Register on the site
  • Enter the vehicle number in the search box
  • You will get vehicle hypothecation detail 
  • If vehicle record does not  show any hypothecation detail, hypothecation has been removed.   

How long is NOC valid for hypothecation removal ?

Ans : NOC given by private banks are valid for three months. Government banks normally don't write validity period on the NOC letter given for hypothecation removal. There are RTOs who insist on bringing fresh NOC from the bank in all the cases.

So , its advisable to apply for removal of  hypothecation from the RTO within three month to avoid the hassle of getting fresh NOC from the bank.   

hp termination faq

Vehicle Hypothecation Cancellation Online

Itzeazy provides service for RTO Hypothecation removal process online. So if you want service for hypothecation termination or hypothecation cancellation online, Itzeazy is there to help you. HP termination or HP cancellation from RC is to be done after the complete re-payment of the loan on the vehicle.

Itzeazy provides service for Hypothecation removal or HP cancellation in Delhi, Gurgaon, Faridabad, Noida, Ghaziabad, Bangalore, Pune , Mumbai, Chennai and Hyderabad. It guides you about the documents required for hypothecation termination and in completing hypothecation cancellation form 35.  

Application for hypothecation termination  is to be submitted in the RTO where vehicle is registered.

hypothecation termination meaning 

In general, people make the mistake of believing that after paying off their vehicle loan EMIs, everything is finished and taken care of automatically. However, Hypothecation removal process needs to be done at the RTO office where the vehicle was registered in order to make sure that loan or hypothecation is not reflected in the RTO record against the vehicle . 

If you don't remove hypothecation from your RC , in the normal circumstances it does not create problem. However when you apply for other RTO related process like Duplicate RC, transfer of ownership of vehicle , vehicle NOC then its mandatory to remove hypothecation from the RTO record first.

There is validity period mentioned on the bank NOC paper. If you don't submit it to the RTO within that period , you will have to again take it from the bank. Bank charges for issuing loan closure letter second time. Also there will be additional hassle in going to the bank. To avoid its advisable to go for HP termination process immediately once you pay off your vehicle loan.      

vehicle hypothecation cancellation procedure

If you have purchased vehicle after taking loan from the bank or any financial institution, on the RTO record this loan would be mentioned . On the RC too vehicle will be shown hypothecated to the particular bank or financial institution. 

The process for adding loan in the RTO record of vehicle is called hypothecation addition.

Once loan is repaid fully , it has to be removed from the RTO record of the vehicle. The process for removing loan from the RTO record of the vehicle is called HP termination.  Its 2 stage procedure :

  • Collection of Bank NOC and form 35 from the bank
  • Submission of application for HP termination in the RTO

DOCUMENTS REQUIRED FOR hypothecation termination

Following are the documents required for Hypothecation termination  :

  • Form no. 35 duly filled
  • A certificate from financier for having retained full dues from the financier (for deletion case only)
  • Original RC
  • Copy of Valid insurance
  • Copy of valid pollution under control certificate
  • Copy of address proof of the registered owner

Forms can be downloaded from the link  
RTO forms​.


hp termination order
hp termination faq
hp termination order

To book order or for any query or concern please speak to one of the consultants over phone or chat. You can also write to us. We will get back to you. 

Itzeazy logo

How to apply for Hp termination online 

Itzeazy takes you through step wise procedure of getting NOC from bank for HP termination in the form 35, help you completing documents required for hypothecation termination and make your due representation in the RTO office.  

Service offered by Itzeazy is door step and hassle free . We provide SLA bound service.

Itzeazy provides service for HP cancellation from RC online. The steps involved in the process are :

  • Requirement understanding from the client

  • Sharing of documents required for HP deletion by Itzeazy with the client

  • Advance payment of service charge by the client
  • Verification of the soft copy of the documents

  • Collection of physical copy of the documents from door-step

  • Document submission to the RTO by Itzeazy

  • Work completion and dispatch of RC  

Approximate time for Processing - 30 days

RTO visit Required                        

Delhi , Gurgaon , Faridabad, Bangalore, Pune, Mumbai, Chennai - No


Noida , Ghaziabad , Hyderabad              -  Yes

During entire process we keep you updating about the progress of the work. All the above steps will be carried at our self serving portal . You will get regular update at the same portal along with mails and SMS.



Itzeazy provides door step hassle free vehicle ownership transfer service. Online RC transfer service of Itzeazy is available in the following cities :