HI Ertiga_ZMR, following are the steps:
1) Call the AXIS bank help number and get the address for the car loan division. It is not generally in the bank branch which helped you get the loan, but a different one that deals with loans specifically.
2) Go to the branch will all the car & loan papers.
3) Fill the proper forms and deposit the outstanding amount.
4) Get the NOC letter from the bank and also Form 35 filled and signed by the bank authorities.
5) Deposit form 35 , NOC together with the current Smart card to ROC. Take the receipt.
6) ROC will issue you with a new smart card (Hypothecation = N). May take upto 30 days. Hence you will need the old smart card xerox and ROC receipt in order to drive the car within this period.