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Had a few questions wrt closing my loan with the bank.
1) How many original copies of the NOC do we need to collect from the bank and where will it be used?
2)Does anyone have the format for the NOC from the bank after paying off all the car loan dues? Do we require the car details on that NOC.
3) Is there any other letter apart from the NOC that we should collect from the bank.
My bank has issued the 'All dues payed letter' but has only put the bank loan account number on the same, and has not mentioned any car details. Will that suffice for Hypothecation removal from RC and Insurance certificate? Also they have issued only one letter as above and it only mentions that all dues have been payed. It does not mention that they have NO OBJECTION that the hypothecation lease can be removed. Should I get a separate letter issued? and how many copies of the same should I request for?
From the sound of it, the bank has only given you the no dues certificate. This certificate only confirms that the loan has been paid in full and the bank has no further claim.
For removing hypothecation clause from your RC, ask the bank for a NOC addressed to RTO. It should include details of your car viz. Regn. No., model at least.
Also you have to get Form 35 (Notive of termination of hypothecation agreement, in duplicate) from RTO and get it signed from the bank.
If ur Car loan is Compleated so cut of Bank Hypothecation on RC
Generally you get Form 35 duly signed by Bank along with No-Due certificate. And you need Form 35 in original and a copy of No-Due certificate along with RC, insurance valid at that time and PUC to get hypothecation cancelled from RC. This is what I did once.
What Ramesh Madhavan explained above could be another way of doing the same thing.
You may need this No-Due certificate in some scenarios where you want to avail another loan on same name and account, if trying to get a loan within 6 months of closure of this loan. It may be asked by few banks even if the closure is more than 6 months. So do preserve all the documents you get from bank, including copy of Form 35.