Simple Steps to Removing Hypothecation from RC Book

Hero Fincorp28 Apr, 2021Finance

Nowadays, it is easy to buy a two-wheeler on a loan thanks to easy EMI options, faster processing and affordable interest rates. Also, the number of financial institutions willing to invest in customers with a high-risk ratio has increased. However, unless you pay off the two wheeler loan, the asset is legally owned by the lender. In short, the asset is still hypothecated with your creditor, the details of which must be included in your RC book. Hence, as soon as you repay the amount and the loan is terminated, it is crucial to remove the hypothecation from the RC book to transfer the ownership in your name. Once the process is complete, a fresh RC book will be issued in your name.