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      Form 35

      If you bought your vehicle on finance, you need to submit RTO Form 35 after paying off the dues. It helps you clear the hypothecation entry on your vehicle's Registration Certificate (RC). Read on to know more about the application process, documents required, and more for a thorough understanding of Form 35.

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      What is Form 35?

      Form 35 is the notice to finally terminate the hire purchase/lease/hypothecation of your vehicle RC. It is submitted to the registering authority to inform that the loan on the vehicle has been fully repaid. After verification, the registering authority updates its records and removes the financier's endorsement from the RC.

      A duplicate copy of Form 35, endorsed by the registering authority, is sent to the financier. A third copy may be required if the vehicle was originally registered in a different registering authority.

      Form 34 vs Form 35: What is the Difference?

      While Form 34 and Form 35 are used to notify the registering authority about the hypothecation of your vehicle, here are the key differences:

      Basis of Comparison RTO Form 34 RTO Form 35
      Primary Purpose To apply for making an entry of a Hire-Purchase, Lease, or Hypothecation agreement (adding a loan to the RC). To apply for the termination/removal of a Hire-Purchase, Lease, or Hypothecation agreement (clearing a loan from the RC).
      When is it Used? When a vehicle is purchased with a loan. After the vehicle loan is fully paid.
      Components Details of the vehicle, owner's information, and the financier's name/address. Requires signatures from both the owner and the financier. Details of the vehicle, the date the agreement ended, and signatures from both the owner and the financier/bank.

      What Details are Included in Form 35?

      Listed below are the key details that are included in RTO Form 35:

      • Addressee: Address the form to the concerned RTO in your jurisdiction.
      • Vehicle Details: Your vehicle's registration number.
      • Applicant Details: Name, mobile number, and signature/thumb impression.
      • Financier Details: Name and signature/thumb impression.
      • Office Endorsement: Reference number, officer's name/designation, date of cancellation of hypothecation entry, and signature of the registering authority.

      How to Download Form 35?

      Check out the steps below to download RTO Form 35:

      • Step 1: Navigate to the official website of Parivahan Sewa.
      • Step 2: Tap on 'Informational Services' from the navigation bar.
      • Step 3: Now, click the option provided for 'Downloadable Forms'.
      • Step 4: Locate and tap on the 'Form 35' link to open and download it in the PDF format.

      How to Fill Out Form 35?

      Here is a step-by-step guide to fill out Form 35:

      • Step 1: Address Form 35 to the registering authority in your jurisdiction.
      • Step 2: Type in the vehicle registration number and mobile number in the spaces marked.
      • Step 3: Enclose the form with the required fee and documents.
      • Step 4: The registering authority processes the application further after verifying the documents and details provided.

      Documents Required with Form 35

      Given below are the documents that you would require at the time of submitting RTO Form 35:

      • Original vehicle Registration Certificate (RC)
      • No Objection Certificate (NOC) from the financier
      • Identity and address proof of the registered owner
      • Copy of valid insurance policy
      • Pollution Under Control Certificate (PUCC)
      • Certificate from the financier confirming that all outstanding dues have been fully paid

      Importance of Form 35

      Form 35 is essential for obtaining the complete ownership of your vehicle. Here are some aspects that make it all the more important:

      • Establishing Full Ownership: The financier technically retains a stake in the vehicle until your Form 35 is processed. This form ensures that the hypothecation clause is removed from your RC.
      • Facilitating Resale: You cannot legally sell or transfer the ownership of a hypothecated vehicle to another person without obtaining an NOC from the financier.
      • Insurance Settlement: Once hypothecation is removed, insurance claim payments are generally made directly to the owner.
      • Clean Record for Future Loans: Officially closing the hypothecation in RTO records makes sure that you can take a loan again keeping your vehicle as collateral if required.

      Common Reasons for Form 35 Rejection

      The registering authority may reject the Form 35 application due to the reasons listed below:

      • Signature Mismatch: If your signature or the financier's official seal/signature does not match the RTO's existing records.
      • Missing Duplicate/Triplicate Copies: RTOs often require multiple copies of Form 35 so they can send an endorsed copy back to the financier.
      • Pending Traffic Fines: If there are outstanding e-challans or unpaid road taxes against the vehicle registration number.
      • Discrepancies in Vehicle Data: Any mismatch in the chassis number or engine number provided on the form versus what is recorded in the RTO database.

      FAQs on Form 35

      RTO Form 35 is used to apply for the removal of hypothecation/hire-purchase/lease status from your vehicle's Registration Certificate (RC). It is submitted to the registering authority in your jurisdiction.

      Yes, you can fill out the RTO Form 35 online through the Parivahan Sewa portal. Click on the 'Online Services' option, tap 'Vehicle Related Services', and select your state and RTO. The final step is to click on the 'Hypothecation Termination' page to access and fill out the RTO Form 35 online.

      As per Rule 81 of the Central Motor Vehicles Rules, 1989, you need to submit ₹100 for cancellation of the lease/hire-purchase/hypothecation agreement. The fees may differ from one state to another.

      You either need to obtain a No Objection Certificate (NOC) from your financier or clear the loan first to sell your vehicle.

      The documents required with an RTO Form 35 are the vehicle Registration Certificate (RC), NOC from the financier, a certificate from the financier for having obtained full dues, and an identity or address proof of the registered vehicle owner.

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      Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

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