No need of physical documents for hypothecation of vehicles after Oct 31 in Delhi
Sep 15, 2021
New Delhi [India], September 16 : In a significant move to further ease the process and increase the transparency of hypothecation on vehicle loans, Delhi Transport Minister Kailash Gahlot, convened a meeting with all major banks offering loans on vehicles in Delhi, said a press release from Delhi Transport department.
Hypothecation services (HPT) which include Addition, Continuation and Termination of Hypothecation on vehicle loans are one of the most availed services of the Transport Department. Since the launch of Faceless services, on August 11, Delhi had received 7,111 applications for HPT. It is to be noted that under this initiative, 33 services of the Transport Department have been made completely faceless.
Earlier, an applicant after foreclosure of a loan had to apply for termination of Hypothecation and submit Form 35 and NOC from the bank for termination within 90 days. The Transport department had already partnered with ICICI bank to allow automatic termination since the launch of Faceless services and have received data of over 7800 applicants who have loans on vehicles.
From the beginning of November, any applicant who have availed vehicle loans from any financial institution, will not need to visit the bank, physically submit any document. Once the loans are added or paid off, the data will be directly transferred by the bank to the VAHAN database, which will enable the department to verify and approve the HPT service. In the meeting, Kailash Gahlot also directed the banks to allow Aadhar based authentication through e-signature.
In a statement, Gahlot said, "Directions have been issued to ensure no physical documents will be received regarding Hypothecation addition and Termination after October 31st. Further, we've also clarified that banks or lending institutions will have to submit all documents and NOC digitally through the software, through OTP received on the Aadhar linked mobile number, and hence do away with any requirement of a physical signature."
