Vehicle Hypothecation Cancellation In Kerala


I own a Maruti Esteem which I bought around 6 years ago. Like any salaried guy, I bought it on a vehicle loan from a bank. This fact is marked on the registration certificate of the car and is known as hypothecation. Once I complete loan payment, I can remove this from RC card and the process is know as hypothecation termination.

Usually the bank will send a confirmation letter and 2 copies of form 35 indicating that my loan is closed and then I can take complete ownership of the car. This involves filing the form 35 with Motor Vehicles department and removing hypothecation from the RC card. This is important since this makes you the real owner of the car and you can easily sell it anytime you want.

However even after completely paying the loan, I never received any documentation from the bank. After waiting for a while I contacted my bank branch and they promptly gave loan completion certificate and form 35 and I even got an offer for a new loan! The loan completion certificates are addressed to RTO and Insurance company and form 35 is addressed to RTO for removing hypothecation from records. I used the new online application Website provided at to cancel hypothecation and change permanent address in RC card. This involved online application, online payment and submission of documents at the RTO. Within a month I got the new RC card through registered post.

This article provides a step by step guide on removing Hypothecation and changing address on your new RC card. Note that changing address is optional, however many people will have a different address now than the one they had at the time of car purchase. This guide is specific for Kerala (I had done it from Trivandrum RTO office). In places like Bangalore and Delhi the hypothecation removal process seems complex than in Kerala. Even in Kerala, the process is far from simple. However the newly introduced online system makes it somewhat easier.

Detailed Steps for Vehicle Hypothecation Removal in Kerala

The overall process for changing Vehicle hypothecation in Kerala is as follows,

  • Step 1 (Only if address change is required) :   Take photocopy of your address proof (I used passport copy). Get it attested from a gazetted officer by showing the original. The accepted address proof documents are Election card, Passport, Aadhar, Ration card, Govt. ID card, Govt. Payslip and Others approved RA (no idea what that is!)
  • Step 2 : Ensure that you have paid all dues to the motor vehicle department. If you have bought your car before 2008, ensure that you have paid one time cess of Rs.100 (for cars). Usually you might have paid the cess and endorsed it on RC card. But in my case I had paid the cess but hadn’t endorsed it on RC card and hence had to submit copy of it. Ensure that photocopies of all your payments are attached with your application.
  • Step 3 : Visit and from the right side menu, select Cancel Hypothecation. Fill out the application for Hypothecation termination by selecting RTO, Vehicle registration number and last 5 digits of chassis number (see RC card). You also need to pay the fees online. The total fee I paid is Rs. 175. After the fee is paid, you get an e-Receipt in PDF form. This contains your personal copy and the copy you need to submit to RTO. Important thing to note here is that within 3 days of submitting online application, you need to submit the documents at the RTO office.
  • Step 4 (Only for address change) : Visit and from the right side menu, select Change of Address in RC. Fill out the application for RC address change application by selecting RTO, vehicle registration number and last 5 digits of chassis number (see RC book). You can change permanent address, temporary address or both. Once you enter your address, you will get filled Form 33 in PDF form which needs to be submitted to RTO along with other documents. You also need to pay the fees online. The total fee I paid for this is Rs.35. After the fee is paid, you get an e-Receipt in PDF form. This contains your personal copy and the copy you need to submit to RTO. Important thing to note here is that within 3 days of submitting online application, you need to submit the documents at the RTO office.
  • Step 5 : Buy a paper file or plastic file for organizing documents and ensure that you have the originals of RC card, pollution certificate and insurance certificate in it. Note that you need originals. Ensure that you keep 2 copies of these documents for your own personal use at home/car. Add signed Form 35 received from bank, confirmation letter from bank, signed Form 33 printed after applying for address change and attested address proof document to the file. If you have paid one time cess separately, add a photocopy of the same. Use a paper clip to hold all documents together.
  • Step 6 : Visit RTO office around 10AM. You need 2 envelops with stamps along with your application. The first envelop requires a stamp of Rs. 25 (for sending documents to bank from RTO) and the second envelop requires a stamp of Rs. 40 (for sending the new RC card to your home). You can get this from a nearby shop around RTO. In Trivandrum, you can get this from a nearby telephone booth. Add these envelopes to your file.
  • Step 7 : Visit the reception counter at RTO office and submit your paper file with all documents attached. Ensure that your fee receipts are in front. This allows the officer to quickly scan the Transaction number and locate your online application. He will verify all the documents and then will forward you to the relevant counter. At this counter, your application will be accepted and a receipt will be issued. You can keep this receipt along with photocopies of your RC card/insurance/pollution certificate in your vehicle.
  • Step 8 : You need to wait for 2 to 4 weeks to get the new RC card. In order to track your application, you can use the transaction numbers in your fee receipts at MVD website. The transaction number is of the form A/XXXXX/YYYY. If you have applied for address change and hypothecation cancellation, you have 2 transaction numbers. Visit and then select RTO File Status on the left menu. You need to enter transaction number to get the details. The possible statuses seem to be Entered, Verified and Printed. Once printed, you can expect the registered post of your RC card along with original insurance and pollution certificate any time at your new address.

Document Checklist for Hypothecation Removal in Kerala

  1. Photocopy of address proof (for address change) attested by a gazetted officer
  2. Signed form 33 (for address change, obtained from MVD Website after submission of online application)
  3. Signed form 35 (obtained from bank) and confirmation letter (obtained from bank)
  4. Original RC card, pollution certificate, insurance certificate (this is returned along with new RC card, however keep copies at car/home for your personal use)
  5. Copy of one time cess of Rs.100 (Usually required for vehicles bought before 2009)
  6. e-Payment receipts for online application of address change (if required) and hypothecation termination
  7. 2 envelopes with Rs.25 stamp and Rs.40 stamp. Ensure that Rs.40 stamped envelop has your new address


One thing I have noticed over the years is that it is the ignorance and lack knowledge of laws/rules which breeds corruption. As long as you have good legal understanding of the things and you follow the rules and procedures, you can get most of the government stuff done without paying bribe or getting the help of "agents". So far my interaction with Motor Vehicle department in Kerala has been hassle free. The new online application process is a huge help in this regard. To know more about MVD online application process check out the following links,

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July 29, 2013 | Posted in DIY 13 Comments » | By Jayson Joseph

13 Comments to “Vehicle Hypothecation Cancellation In Kerala”


    Thank you.It was an excellent information.
    But one doubt.Is there a change in Form 35 with bar code etc.?My bank asks me to bring the new form to complete the formalities.

  2. Jayson Says:

    The rules and regulations change very often. So this blog post should be considered only as a general guideline.

  3. Naveen Natarajan Says:

    Very informative article. But, could you provide the size of the two envelopes as well.
    Also, do you have any idea about if we miss the deadline by a day or two regarding – “Important thing to note here is that within 3 days of submitting online application, you need to submit the documents at the RTO office.”

    Thank You

  4. Smita Says:

    Good article. I will be going through this process, and wanted to do it myself. This is very informative!

  5. Jeevan Palackal Says:

    Hi Jayson…
    Thanks for the excellent step by step information.
    I did it myself solely on following your procedure. You are right. If the public is aware of the rules and procedures, there is no need to run around middle men
    Very good work. Expecting more and more information from you

  6. SANJAY Says:

    Excellent article Jayson, However have following queries. Will be obliged if you take some of your valuable time to answer.

    1. Is a pollution certificate required for vehicles bought after 2011? Never had or was asked for one by cops.

    2. The website does not mention about 3 days deadline after submitting online application. Since I am residing outstation the documents will definitely take more than that to reach at RTO at home town if I send it by post to my wards at home. So Is the 3 days limit strict and sacrosanct?

    3. The website asks to submit 2 passport photos also self signed? But your post doesnt mention about that. Are the photos actually reuired?

    4. If not online payment how do you pay?

    Pls reply ASAP, thanks in advance

  7. Thomas Says:

    Great work..! In my experience, following documents are enough for hypothecation cancellation:
    1. Payment Receipt of Rs.175
    2. RC book (original)
    3. NOC from bank (original)
    4. Form 35 from bank (2nos, original)
    5. Insurance (copy)
    6. Pollution (copy)
    7. Envelop with stamp of Rs.40 (to send new RC to you)

    Use paper clip/pin to hold all documents together. No need to use file, they might not accept it.

  8. Liju Says:

    This is one the best article i have ever read about this topic.This information is not even in Govt site with such clarity. Thanks !.

  9. G,Sarna Says:

    hi Jayson,

    Thank you for such step by step and valuable information regarding the Hypothecation Cancellation in Kerala.

    I request you to clarify the size of the envelopes too…


  10. Jerry Says:

    Thank you Jayson for this very useful and detailed blog post. I have used this twice and have recommended it to all acquaintances with vehicle loans. I especially appreciate the practical touches, such as filing all papers and getting stamped envelopes which you have clearly mentioned.

  11. Dante James Says:

    Excellent article Jayson. Hats off to you..
    I dont think we will not get this info with such clarity even if it is enquired in RTO office help desk.
    Not sure about submitting the pollution certificate.

  12. Jeevan Mathew Kurian Says:

    Hi Jayson

    This is great public service. You will not get information in this clarity even from the RTO office.

    Excellent methodical presentation.

    Thank you.

  13. Jose Says:


    I believe this article is of big help for those who have to cancel hypothecation. Highly appreciated and thanks.
    Steps are very clear and explanatory.
    Thanks and hats off!!

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