New Delhi: In a relief to Delhiites buying vehicles through bank loans, the transport department has further eased the process and increased 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.
“In order to make the entire process of vehicle hypothecation convenient and hassle-free, I had a fruitful meeting today with leading banks and NBFCs wherein It has been decided that from 01.11.2021, the entire process will be ‘ FACELESS ‘ by using OTP based digital signature,” Kailash Gahlot said in a tweet.
Hypothecation services (HPT)
Hypothecation services (HPT) include addition, continuation and termination of hypothecation on vehicle loans are one of the most availed services of the Transport Department.
Hypothecation services (HPT) from November 2021
- 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.
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.
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