How to Get NOC from Bank After Car Loan Closure
You've paid off your car loan - congratulations. Now get the hypothecation removed from the RC. Here's exactly how to get the NOC and what to do with it.
Key Takeaways
- 1Request NOC from your bank within 7–15 working days of final EMI payment.
- 2PSU banks (SBI, BOB, PNB) can take up to 30 days - start the request immediately after payment.
- 3You need both NOC from the bank AND Form 35 (signed by the bank) to submit to the RTO.
- 4NOC has a validity of 90 days - submit it to your RTO before it expires.
- 5RBI mandates that banks issue NOC within 30 days of loan closure - if they delay, file a complaint.
What Is the NOC and Why You Need It
When you took a car loan, the bank registered a 'hypothecation' on your vehicle's RC (Registration Certificate). This is a lien - a legal claim by the bank on your vehicle as security for the loan. As long as hypothecation is on the RC, you cannot freely sell the vehicle, the vehicle shows as encumbered in any RC check, and technically you do not have unencumbered ownership.
Once you have paid off every rupee of your loan - including the final EMI and any foreclosure charges if you prepaid - you are entitled to a No Objection Certificate (NOC) from the bank. The NOC is a letter stating that the bank has no objection to the removal of hypothecation from the vehicle's RC. You then submit this NOC along with Form 35 to your local RTO to have the hypothecation removed and get a clean RC.
Step-by-Step: Getting NOC from Your Bank
After making your final EMI payment (or foreclosure payment), the loan account must first reflect as 'closed' in the bank's system. This can take 3–7 working days depending on the bank's internal processing. Once the account is closed, you can apply for the NOC.
Contact your bank's loan servicing team - either the branch where the loan was processed, the bank's customer care helpline, or the bank's online/app portal (many modern banks like HDFC Bank, ICICI Bank, Kotak, and Axis Bank now have online NOC request options). Submit a written application for NOC and Loan Closure Letter. Carry your loan account number and identity proof.
For online NOC requests (available at HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank, and others): log in to net banking, go to Loans section, find your car loan, and look for 'Request NOC' or 'Loan Closure Documents'. The NOC is typically emailed as a PDF within 7–10 working days.
- Confirm loan account closure status (3–7 working days after final payment)
- Submit NOC application at bank branch or via online banking portal
- Documents to carry: Loan account number, last EMI receipt, identity proof, vehicle RC
- Private banks (HDFC, ICICI, Axis): NOC typically in 7–10 working days
- PSU banks (SBI, Bank of Baroda, PNB): allow 15–30 working days
- NBFC lenders (Mahindra Finance, Shriram Finance): 10–15 working days typically
Documents Received from the Bank: NOC and Form 35
When the bank processes your request, you should receive two critical documents: the NOC letter and Form 35.
The NOC letter is on the bank's official letterhead. It states: your name, the vehicle registration number, loan account number, a statement that the loan has been repaid in full, and that the bank has no objection to removal of hypothecation. It must be signed by an authorised officer of the bank - typically at the branch manager level or the bank's designated signing authority. A photocopy or printout of an unsigned NOC is worthless - insist on an original signed letter or a digitally signed PDF with an authorised e-signature.
Form 35 (Notice of Termination of Agreement of Hire Purchase/Lease/Hypothecation) is the official RTO form that must be submitted to the RTO to remove hypothecation from the RC. Most banks issue a pre-filled Form 35 along with the NOC. The Form 35 must be signed by the bank's authorised officer. Keep both documents carefully - losing either one requires going back to the bank.
- NOC letter: official letterhead, authorised bank officer signature, original required
- Form 35: pre-filled with vehicle details and loan closure confirmation, bank officer signature
- Loan Closure / No Dues Certificate: useful to have as supporting document
- Original RC of the vehicle (you submit this at the RTO for hypothecation removal)
- Verify all details on Form 35 match your RC: registration number, chassis number, engine number, owner name
Submitting NOC and Form 35 at the RTO
With NOC and Form 35 from the bank in hand, visit your local RTO (the one that has jurisdiction over your address - the same RTO that issued or last updated your RC). Submit Form 35 along with the original NOC, your original RC, identity proof, and a nominal fee for updating the RC (typically ₹200–350 depending on state).
If your state's RTO is Vahan 4.0-enabled (most states are as of 2026), you can also initiate the hypothecation removal online via the Parivahan portal under 'Vehicle Related Services' → 'Removal of Hypothecation'. Upload scanned copies of Form 35, NOC, and RC. Pay online. You may still need one physical visit for the smart card reissuance.
The RTO will update the RC database to remove the hypothecation entry. A new RC (smart card) will be issued showing no hypothecation/financier. The vehicle is now unencumbered - free and clear of the bank's lien.
- RTO forms needed: Form 35 (from bank), your application (Form-specific to state)
- Documents: Original RC, original NOC, identity proof
- Fee for RC update: ₹200–350 (state-dependent)
- Smart card fee: ₹200 (for new clean RC)
- Processing time: 7–21 working days at most RTOs
Frequently Asked Questions
More in This Guide
Hypothecation Removal Guide
Complete guide to removing hypothecation from RC
Form 35 Explained
What Form 35 is and how to fill it correctly
Bank Delays NOC
What to do if the bank takes too long
Sell Car With Hypothecation
Can you sell a car with a lien on the RC?
Check RC Hypothecation Status
See if your vehicle has active hypothecation
Information sourced from government portals. Always verify at parivahan.gov.in before acting.