Summary:
New Delhi, Sep 15 (PTI) In a relief to Delhiites buying vehicles through bank loans, no physical documents will be needed for the hypothecation process from November, according to a Delhi government statement.
Under a hypothecation process, the bank takes the purchased vehicle as a collateral against the loan given to a buyer.
After the loan is repaid, the vehicle ownership is restored to the buyer through the process involving the bank and Transport department.
"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," Delhi Transport minister Kailash Gahlot said in a tweet on Wednesday.
Hypothecation services (HPT) that 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 (online services with no human interface) services last month, the department has so far received 7,111 applications for HPT. 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 statement said.