According to a statement by the Delhi government, no physical documents will be required for the hypothecation process on November 1, 2021. Now the entire process will be faceless with the use of OTP based digital signature.
see photosThe entire hypothecation process will become faceless using OTP based digital signature from 1st November
According to a statement by the Delhi government, Delhiites buying vehicles through bank loans will not require any physical documents for the hypothecation process from November. Under a hypothecation process, the bank takes the purchased vehicle as collateral against the loan given to the buyer. After the loan is repaid, the ownership of the vehicle is restored to the buyer through a process involving the bank and the transport department.
“To make the entire process of vehicle hypothecation convenient and hassle free, I had a fruitful meeting with Leading Banks and NBFCs today, wherein it was decided that from 01.11.2021, the entire process will be ‘faceless’ using OTP based digital signature,” Delhi Transport Minister Kailash Gahlot said in a tweet on Wednesday.
To make the entire process of vehicle hypothecation convenient and hassle free, I had a fruitful meeting with Leading Banks and NBFCs today, wherein it was decided that from 01.11.2021, the entire process would be ‘faceless’ using OTP based digital . signature. pic.twitter.com/9pYI2n9Drw
— kailash gehlot (@kgahlot) September 15, 2021
Hypothecation Services (HPT) which includes addition, continuation and termination of hypothecation on vehicle loan is one of the most used services of the Department of Transport. Since the launch of faceless (online services without 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.
Since the launch of faceless (online services without human interface) services last month, the department has so far received 7,111 applications for HPT.
The transport department had already partnered with ICICI Bank to allow automatic termination since the introduction of faceless services and has obtained data of over 7,800 applicants who have loans on vehicles. From the beginning of November, any applicant availing a vehicle loan from any financial institution will not need to visit the bank and submit any documents in physical form. Once the loan is added or paid, the data will be directly transferred by the bank to the vehicle database, which will enable the department to verify and approve the HPT service, it said.
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