Remove Hypothecation of 2 wheeler: Bangalore RTO

A couple of years ago, I was lucky enough to purchase my dream bike, KTM Duke 200. It was a BS4 model with the automatic headlight ON/OFF feature. I picked up an Orange colour one and I cannot express my happiness riding the power machine.

Sell my KTM Duke 200

However, I recently decided to sell my KTM Duke 200 BS4 bike and while the decision was an easy one, it was quite a tedious process to complete the Hypothecation removal step. If you’re worried about the same and looking for quick steps to get the hypothecation removed at any of the Bangalore RTO, take a look at the 3 simple steps below. That’s it, you will be able to get the hypothecation removed from your 2 wheeler.

Why to remove the Hypothecation?

If you have purchased a 2-wheeler on loan from a bank or NBFC, your bike will be linked to the respective financial partner until you close your loan. This is called hypothecation and will reflect in your RC card (Smart card). After you close your loan, the RC card will still have the financial partner’s name linked to it. Therefore, it is important to remove the hypothecation from your RC.

Also, if you remove the hypothecation, you will be eligible to sell your bike to any buyer. Else, you cannot sell the bike.

3 simple steps to remove 2 wheeler hypothecation in Bangalore

While the below mentioned tips are for a 2 wheeler, I believe the process will remain the same for a 4 wheeler. Remember, you need to have your 2 wheeler loan closed in order to proceed with the below steps.

Step 1: Get the following documents ready –

  • NOC and Form 35 Original (Get this from your financial banking partner after your loan is closed, sign on both the forms)
  • Pollution Under Control copy (Take your bike to an emission center and they’ll give you the PUC post check)
  • Insurance copy (Download a copy from your insurance service provider)
  • Driving license copy (Take a photocopy of your DL front and back)
  • RC card Original (Smart card)

Step 2: From any shop around the RTO, purchase the below –

  • Paper file (will cost you around Rs.10)
  • An envelope with Rs.18 worth stamp affixed
  • A small cover to place your Original RC card inside

Place all the documents inside the file, including the RC card inside the small cover. Put everything inside the envelope and proceed to the RTO.

Step 3 : Go inside the RTO and follow the steps –

  • Check for the counters where you can get the Hypothecation removed.
  • At the counter, show the documents to the person in charge. Once they give you a go ahead, pay Rs.200 as fees. Obtain the receipt.
  • Take all of these to another counter and submit. They will enter all your details and give you an acknowledgement slip.

That’s it! You will get the RC card (post hypothecation removal) to your home within 2 to 3 weeks. You can also check the status on the official Vahan website using the application number given on the acknowledgement slip.

Once you get the RC card, you are now eligible to sell your 2 wheeler! Hope this helps!

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