What's Next After Foreclosure of Our Loan?


Thread Starter #1
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Hi Friends,

I am starting this thread to let others and me know what to do after foreclosing. I foreclosed my Car loan this week. Bank staffs informed me, that I will receive my NOC in two weeks. What is next?

Note: I got a used car loan from HDFC with interest rate of 14%. I did foreclosure by paying 5% prepayment interest on my outstanding principal. I saved 30K by doing this.

Drive Safe!
 
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This is what needs to be done (applicable in Kolkata) but bank processes should be same everywhere.
1) Go to the bank and get the NOC. There is a chance that bank will posts it to your address, but since they do not benefit in any way, 80% of them will sit on that document.
2) Once you get that document, go to RTO and have the regn/SMART card updated. If you check your Smart card, it is in your name. However on the back side, it is written that 'Hypothecated = Y'. The new card will have this updated to 'N' or blank. General charge for RTO is Rs.2000/-. You don't have to do this now, but will need to if you sell/exchange the car. Some RTOs' do post the card to your home.

Thats it. Nothing more.
 
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Hi Rekharam,

I would like to understand one thing, i reckon you have taken the used car loan on the above mentioned vehicle, in that case will you be able to remove the bank name from the RC?
 
Thread Starter #7
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This is what needs to be done (applicable in Kolkata) but bank processes should be same everywhere.
1) Go to the bank and get the NOC. There is a chance that bank will posts it to your address, but since they do not benefit in any way, 80% of them will sit on that document.
2) Once you get that document, go to RTO and have the regn/SMART card updated. If you check your Smart card, it is in your name. However on the back side, it is written that 'Hypothecated = Y'. The new card will have this updated to 'N' or blank. General charge for RTO is Rs.2000/-. You don't have to do this now, but will need to if you sell/exchange the car. Some RTOs' do post the card to your home.

Thats it. Nothing more.
1. Thanks Chayan. I will wait this week, if I don't receive my NOC, I will visit them next week and get it from them.
2. I don't see Hypothecated detail in my smart card anywhere. The owner name in my RC (Smart card) is mine.

Hi Rekharam,

I would like to understand one thing, i reckon you have taken the used car loan on the above mentioned vehicle, in that case will you be able to remove the bank name from the RC?
I need to visit the RTO once I get the NOC and check with them. Even Im new to this process. I will update you definitely. All I see is my name in the RC Smart card.

good thread. would like to know more on this.
I will definitely update all the details for our forum.
 
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According me to check this thing Ram !

1) If a vehicle is on loan, it will be indicated for sure on the RC as hypothicated and

after obtaining the NOC from bank you need to get that cancelled. I did the same for one of my previous car !!
 
Thread Starter #9
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According me to check this thing Ram !

1) If a vehicle is on loan, it will be indicated for sure on the RC as hypothicated and

after obtaining the NOC from bank you need to get that cancelled. I did the same for one of my previous car !!
Buddy, I don't see any hypothecate in my RC (smart card) at least. Waiting for my NOC to be delivered.
 
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Buddy, I don't see any hypothecate in my RC (smart card) at least. Waiting for my NOC to be delivered.
Hi there Ram, pay a challan amount of 10 and get the vehicle details.
The hypothetication details are mentioned in that print out.
If your vehicle is KA05 REGD, then RTO is above the Jayanagar 4th Block Bustand.

Don't listen to any agents there, just go to the challan counter, and get the vehicle transcript.(Forgot the exact name).
Don't take any other form, as they sell you unwanted forms.
 
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Thread Starter #11
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Thanks Mukesh, for the details. Mine is KA03 registered. I guess mine is in Indiranagar (Bangalore East). I'm planning to visit next week.
 
Thread Starter #12
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Got my NOC finally from bank after a month. Tomorrow, I may goto RTO for Hypothecation cancellation. I will update you the process details.
 
Thread Starter #14
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i still haven't got the NOC from bank :stupid: but yeah i'll know about all the details from you then i'll go [:D]
You can go to bank and request for one, if it is more than a month after closure. I am sorry, I couldn't go today as it took longer than predicted in a bank work today. I will be going to RTO this Friday.

Sure, I will update most details.
 

sethumurugan

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Even I have closed my bike loan from HDFC bank.

Once everything is closed, if the RC book is with bank, you have to get the RC book. Generally it will be given back with NOC. If you do not receive any calls/post from bank pls visit them. Actually it took 4 weeks for me get the NOC and RC. In my case, RC was sent to Mumbai. So It took 2 weeks to get RC from mumbai office. Then I had applied for NOC and that took two weeks. Every Monday [being that was my weekly off] I visit bank and get it.

Generally in RC book there will be a hypothication stamp by bank. Hope even you had used vehicle, RC would have been transfered to your name [unless the transfer is happened HDFC would n't lend to you]. So you need to cancel the hypothication.

In TN the process is as follows

  • Insurance should be valid if not renew it.
  • a valid emision test certificate should be available, if not get one.
  • with that apply to RTO and get the hypothication cancelled.

Hypothication cancelation should be done within 6 monhts from the NOC date. Otherwise you have to get another fresh NOC from bank.

I am planing to do with an agent. As some one said you can also directly go to counter and do it. But the thing is to get it back you need to wait for long. in case of going thru agents, we need not to worry since he is doing that for money he will take care of it perfectly.
 
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