Fell Prey To Fraud? Stop Blaming Your Banks
Not removing hypothecation on your car loan
Taking a loan for owning a car these days is a common sight but beware of the circumstances later if you don’t heed to it in a proper way.
In the case of a home loan, after the full amount of the loan is paid off by you, bank returns the original documents related to the property ensuring that the home is solely owned by you and not the bank.
In case of a car loan, you must make sure that the hypothecation is removed from your car's Registration Certificate book. Hypothecation is an endorsement in your car's registration book.
This process has to be completed by you to enable you to officially become the owner of the car.
This document shows the owner of the car. Thus pay the final EMI and a 'no objection certificate' from the bank. After this, you have to go the regional transport office to get the hypothecation removed from the RC.
Also, you have to inform your insurance company the hypothecation has been removed. If not, there could be hassles in case of an insurance claim.
