The Delhi government has integrated its Hypothecation (HP) services with 62 banks and Non-Banking Financial Companies (NBFCs).
With this, Delhi residents may obtain hypothecation services such as the addition, continuation, and termination of hypothecation of automobile loans at their leisure.
The Aam Aadmi Party (AAP) administration has simplified the automobile loan process to assist the Delhi people. The Delhi government has integrated its Hypothecation (HP) services with 62 banks and NBFCs. With this, Delhi residents may obtain hypothecation services such as the addition, continuation, and termination of hypothecation of automobile loans at their leisure.
According to the Delhi government, residents would no longer be needed to present physical papers or visit any business for any Hypothecation Deletion (HPT) Related services, which witness approximately 2 lakh transactions every year.
In Delhi, hypothecation services are utterly faceless. With 62 banks and NBFCs on board, there is no need to go to RTO for Hypothecation services. Once a loan has been finalized, your updated RC will be available on mParivahan and Digilocker, The Delhi Transport Department tweeted about it.
The Delhi Transport Minister has directed the department to halt manual HPT services at all banks and NBFCs. According to the city's transportation department, Housing Development Finance Corporation Limited (HDFC) and Industrial Credit and Investment Corporation of India (ICICI) Bank, which account for 70% to 80% of all car loans in Delhi, have already been incorporated into the system.
The Delhi Transport Department, in a circular dated October 4, 2021, instructed vehicle loan-providing banks, financial institutions, and NBFCs to integrate their hypothecation services with Vahan Portal so that the No-Objection Certificate (NOC) for HP termination can be received in digital format directly at the Vahan platform of the National Informatics Centre (NIC).
All banks/NBFCs in Delhi that finance cars have been provided APIs and user credentials for integration with Vahan for online exchange of hypothecation termination data.
Banks/NBFCs were also ordered to complete the integration of Hypothecation Addition (HPA) services with the Vahan portal to complete the entire integration. More than 2.62 lakh HP-related services have been used since the start of faceless services in February 2021.
As a consequence, applicants are not required to acquire Form 35 from their banks and then apply to the Transport Department for HP termination by uploading these papers.
Following HP's auto-termination, the revised Registration Certificate (RC) is now accessible on the mParivahan and DigiLocker platforms. The car owners are also notified through Short Message Service (SMS) of the automatic termination of their HP.