Get your new RC in just two hours after vehicle loan closure! NIC rolls out automatic system

Kozhikode: Once a vehicle loan is fully repaid, owners will no longer need to run between banks and RTO offices to remove the hypothecation. With the new automatic system, vehicle owners themselves can complete the steps required to receive the updated Registration Certificate (RC).

A new certificate can be downloaded within two hours. The system has been developed by the National Informatics Centre (NIC).

Under the current procedure, after repaying the vehicle loan, the owner must visit the bank to obtain Form 35, then go to the RTO to pay the fee, and finally upload Form 35 on the Parivahan website. Only after several days is the hypothecation (termination of hypothecation) removed and a new RC issued.

However, with the new system, vehicle owners need not visit either the bank or the RTO. Once the loan is fully repaid, an automatic message and link will be sent to the owner’s mobile number. By opening the link and using the received OTP, the owner can pay the Motor Vehicles Department’s service charge of ₹85. The updated RC can then be downloaded within two hours. These steps can be completed from anywhere in the country.

Prior to the official rollout, RC issuance through this system had already started on a trial basis. As the trial was successful, authorities aim to fully transition to this method by Friday.

In the initial phase, the payment system is being implemented in collaboration with HDFC Bank. Later, it will be expanded in association with other banks as well.

The aim of the new system is to ensure that vehicle owners can complete loan-related procedures without difficulty, said Pradeep Singh, Director, NIC Kerala.