Dehypothecation What?

So whenever you take a vehicle loan for 4 wheeler or 2 wheeler, basically debtor (one who takes loan) pledges a collateral to secure a debt. Once the debtor closes the loan the Registration Certificate (normally called RC Book, it is mostly a Smart card now like a Chip Credit Card) needs to be updated and the process is called Dehypothecation and recently I closed loan for my two wheeler and had to go through this. Now why I took a two wheeler loan, just like that I guess, there was no reason as such. 

Life Lessons

One of my fears is always visiting a government office and not being able to get things done and be turned down for several reasons. I generally read up and make sure I understand the process (internet is a blessing, you can search). I have struggled quite a bit getting my first passport. That’s a story in itself that started in Silchar, Assam and ended in Bangalore, Karnataka. I lost my purse and had to get my duplicate license. Or my experience of drawing money after NSC had matured from post office , yes I did that mistake once 🙂

In Hindi there is pithy saying ” दूध का जला छाछ भी फूक कर पीता है।” What this means is One who has been burnt by milk (generally drunk hot in India) will drink  buttermilk (normally it is chilled and is a cold drink) also as carefully.

Step by Step Guide (Aug 2021)

So I had planned this out for a while. I had even approached one of the folks who will get it done for you but charge about 2000. But unfortunately there was a crackdown by the transport department in the RTO and now the owner of the vehicle needs to present so I had no option but do it myself. I think that any government service can have a layer of private sector which can enable to get things done by taking a charge which people, whoever can afford, can pay, but retain the normal route where one can get things done as well for themselves. And possibly get government employees some extra perks or incentives for getting things done all transparently “without under the table” 

Just the evening before I was listening to “This is Water” 2005 commencement speech given by David Foster Wallace to a graduating class at Kenyon College that set me up for the day. I generally try to empathize with all the public servants as they have to deliver lot of public good without any incentives even if they don’t get things done.

So here is a step by step process that I went through (August 2021, things do change so keep an eye on the actual Vahan’s website) 

My vehicle was registered with KA51 RTO (Electronics City RTO) which was fortunately 10mins from my place.

Documents needed

No Objection Certificate

Form 35 (two copies)

Both these documents are signed and sealed by the Bank who gave loan and they generally send it out to your address and is valid for 3 months from the date of issue.

Insurance Copy ( A copy of valid insurance)

Online payment Receipt – Fees of 200 to be paid online and documents needs to uploaded (will give screenshots later)

Emission Certificate Copy ( for me they asked two times and I was happy telling them it is a electric vehicle, I just thought if they still ask me how will I get one :-), can happen but fortunately not this time)

Original RC (Put in a plastic pouch, like the one that you get your chutney from a restaurant) – It will be returned after the update.

A self addressed envelope with 18 rupees stamp within Bangalore (40 rupees outside Bangalore). You can buy that from a nearby Photo Copy shop (strategic locations for such shops). I paid 35 for the envelope with 18 rupees stamp.

A basic guide of Vahan’s Website

Government money transactions going online is good as it reduces human to human interactions and hence the “under the table money”. So you can go to Vahan . Choose you state and RTO and you will be directed to page with all services and then choose Hypothecation. Keep your Vehicle Registration number and Chassis Number.

Once you enter both these as given below you will get next options. 

You will have the option to pay online and I would recommend doing that otherwise get ready to pay at the office physically which can be time taking and tiring. Once you pay it will need another couple of clicks to clear your transaction after which the money gets registered with the RTO. Don’t miss this else you the online payment is not complete.

After this step you will get application number and now you would need to upload soft copies of NOC/Form 35/RC  (max 200kb files, scan at lower DPI 75/100). You will get an option to print Form 35 from Vahan’s website as well, you can skip that as you need sign/seal of the bank.

Once you upload the document and submit, the files are only updated successfully if you receive a message on your phone like this one.

Once you have done all this make a file of all the documents and visit the office. As usual I was extra careful due to Covid situation and reached office gates at 9AM and bought the envelope. Office gates opened at 10AM. You need to go Room 5, Non Transport section and your file will be reviewed by three people. Having a laptop or atleast be ready to access Vahan on Mobile Phone. I took my laptop and I had to resubmit the files as it never got registered on their servers and only by doing it again I received SMS from servers.

I haven’t got mine RC yet but my file was accepted by RTO’s office and hopefully it will get delivered (fingers crossed)

Hope this helps anyone looking for dehypothecation process in Bangalore or in other states too since its the similar process.

Team BHP link (Good link which helped me)

I wouldn’t mind a thanks in comments if it helps you 🙂

 

Update: 18 Sep 2021

I have received RC Smart Card by post couple of days back. So the process mentioned here works and I am happy that I could get this done without any agent. Read what is needed, have patience and don’t hurry up and this will get done. It took more than a month for the card to be delivered.