Removing hypothecation from your car's RC in Maharashtra: Form 35, documents, fees and timing
By Arjun Ramanarayanan, IndiCar · Published 21 October 2026 · Tips
Once your car loan is closed, you need your bank's NOC and Form 35 signed by you and the bank. File within the NOC's usual 60 to 90 day validity, online through Vahan or at the RTO.
To remove hypothecation from your RC in Maharashtra, you need two things from your loan closure: the bank's NOC and Form 35 signed by both you and the bank. If your car is registered in Maharashtra in your individual name and your bank is integrated with the Vahan portal, you can apply online without visiting the RTO. File within the NOC's validity, which is usually 60 to 90 days according to service providers.
What is Form 35 and who signs it?
Form 35 is the Notice of Termination of Agreement of Hire-Purchase, Lease or Hypothecation. It is the RTO application that tells the registering authority your loan agreement has ended, so the financier's name can come off the RC.
The form must be signed by the registered owner and the financier. A Form 35 that is unsigned, or carries only a rubber stamp from the bank, is a common reason for rejection, according to an RTI guidance site. Check both signatures before you file.
Under Rule 61(1), the form is made in duplicate. If the RTO that originally registered your car is different from the one you are applying to, it is made in triplicate. The duplicate copy is endorsed by the registering authority and returned to the financier.
Can you remove hypothecation online in Maharashtra?
Yes, through the Maharashtra transport department's faceless Hypothecation Termination service, if three conditions hold:
- The vehicle is registered in Maharashtra.
- Ownership is individual.
- Your bank is integrated with the Vahan portal for loan closure information.
The steps, according to the department's process flow:
- Select the service on the Vahan citizen interface.
- Authenticate with Aadhaar. An OTP goes to your Aadhaar-registered mobile.
- After entering the OTP, select "Termination of Hypothecation".
- Fill the form online and upload documents.
- Pay the fee.
RC printing starts automatically once the application goes through. If any of the three conditions fails, for example the car is in a company's name, you use the RTO route instead.
Which documents do you need?
The department's online list and the RTO lists from service providers are shown below. The online list does not say whether other documents are also needed, so check the Vahan screens as you apply.
| Document | Faceless online (Maharashtra) | RTO application |
|---|---|---|
| Bank NOC | Yes | Original |
| Form 35 | Yes, duly filled | Two copies signed by owner and bank |
| Owner ID and address proof | Yes | Attested address proof |
| Front photograph of the vehicle | Yes | Not listed |
| Registration certificate (RC) | Not stated | Original |
| PAN card or Form 60/61 | Not stated | Self-attested copy |
| Insurance certificate | Not stated | Attested copy |
| PUC certificate | Not stated | Self-attested copy |
| Fee | Paid online | Prescribed fee |
The RTO list combines what Acko Drive and Itzeazy report for Mumbai. The online list is from the Maharashtra transport department.
How much does it cost?
The fee is set under Rule 81 of the Central Motor Vehicles Rules, 1989, but the figures quoted vary by source. One service provider puts it at Rs 200 for a car (LMV) plus Rs 200 for smart card printing, paid online.
| Source | What it reports |
|---|---|
| Parivahanbharat (2026) | Rs 200 RTO fee for LMV cars, plus Rs 200 smart card printing fee, paid online |
| Ecozaar (2025) | Usually Rs 100 to Rs 300, depending on the RTO |
| Rupeewisdom (2025) | Varies by state and vehicle class; check the Vahan fee panel at checkout |
Treat the Vahan fee panel as final, since that is what you actually pay. Do not confuse this with the fee for recording a loan on the RC: Itzeazy lists endorsement of a hypothecation agreement at Rs 500 for a motorcycle, Rs 1500 for a light motor vehicle and Rs 3000 for medium or heavy vehicles. That is a different service.
How long does it take?
About a month, according to Itzeazy's Mumbai guide, after which the new RC is delivered to your registered address. On the faceless route, RC printing is initiated automatically.
The clock that matters more is the NOC's. NOCs usually expire within 60 to 90 days, and you must file within that window. If it lapses, you have to go back to your bank or NBFC for a revalidated or duplicate certificate, which can mean extra fees and delays. Our view: apply in the first week after you receive the NOC.
What can block your application?
- Pending e-challans. The system blocks HP deletion if any are unpaid.
- Road tax not paid up to date. Same result.
- Form 35 without proper signatures. Unsigned or rubber-stamp-only forms get rejected.
- Expired NOC. You will need a fresh one from the lender.
- Bank not on Vahan. The faceless route will not work; file at the RTO.
Clear challans and confirm your road tax status before you start. It takes less time than a rejected application.
How to buy your next car through IndiCar
Pick a car from all new cars with Mumbai on-road prices, or work out your figure with the on-road price calculator. Book on indicar.in at IndiCar's itemised on-road price with a refundable reservation.
Before you book, IndiCar confirms in writing the stock, the delivery date and the itemised price breakup. IndiCar sources the car from partner dealer stock, the authorised dealer invoices it, and IndiCar handles registration, insurance and delivery in Mumbai, Navi Mumbai and Thane. You deal only with IndiCar from booking to handover.
Sources
- Faceless Hypothecation Termination Service Process Flow
- Form 35 [Refer Rule 61(1)], Parivahan
- Form 35 [See Rule 61(1)], Maharashtra Transport
- R.T. Office, Kerala: Termination of hire purchase, lease or hypothecation of a vehicle
- Hypothecation termination in Mumbai
- How to Remove Hypothecation After Car Loan Termination?
- Hypothecation (HP) Removal from RC Online 2026
- Form 35 Explained: Cancel Loan Hypothecation Online (2025)
- Hypothecation Termination in India: Form 35, Online RC Update, Fees and Step-by-Step (2025)
- Hypothecation Removal (HP Termination)
- Hypothecation Removal Online: Parivahan HP Termination
- Remove Vehicle Hypothecation After Loan Closure
Buying a new car through IndiCar
IndiCar arranges new-car purchases in Mumbai, Navi Mumbai and Thane. You book a new car on IndiCar at the on-road price shown on its car page, with the full price breakup: ex-showroom, RTO registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.
You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.
Frequently asked questions
Who has to sign Form 35?
Both the registered owner and the financier. A Form 35 that is unsigned or carries only a rubber stamp is a common reason for RTO rejection.
Can I remove hypothecation online in Maharashtra?
Yes, through the faceless service on the Vahan citizen interface, if the car is registered in Maharashtra, owned by an individual, and your bank is integrated with Vahan for loan closure information. You authenticate with Aadhaar, select Termination of Hypothecation, fill the form and pay the fee.
How long is the bank NOC valid?
Usually 60 to 90 days, and you must file within that window. If it expires, you have to ask your bank or NBFC for a revalidated or duplicate certificate, which can mean extra fees and delays.
What is the fee for hypothecation removal?
One source reports Rs 200 for a car plus Rs 200 for smart card printing, paid online. Another says usually Rs 100 to Rs 300 depending on the RTO. Fees vary by state and vehicle class, so check the Vahan fee panel at checkout.
How long does it take to get the new RC?
About a month, according to a Mumbai service provider, after which the RC is delivered to your registered address. On the faceless route, RC printing is initiated automatically.
Can pending challans stop hypothecation removal?
Yes. If the vehicle has pending e-challans or road tax is not paid up to date, the system blocks HP deletion.
Tags: hypothecation removal, form 35, maharashtra rto, vahan, car loan, mumbai