Once the loan amount is completely repaid, hypothecation removal is required to transfer the ownership of the car to the customer as there is no outstanding amount against the car. The car is in the physical possession of the customer but the bank is the actual owner of the car until the customer pays off the entire loan amount. This will be useful while updating the credit history in case of any discrepancies in your credit score and report.ĭ) Hypothecation essentially means that the car for which you have taken a loan for is kept as collateral with the bank until you pay off the loan. The set of documents includes a No Dues Certificate (NDC) or No Objection Certificate (NOC) from the bank along with other documents submitted at the time of the car loan application.Ĭ) Do collect the entire repayment statement of your car loan from the bank which you can receive after submitting an application in the bank. After completing the repayment of your car loan, there are five important things that you need to do as explained below:Ī) If you made the last EMI on your car loan or did a prepayment to close the car loan, then get the final payment receipt from your bank.ī) Within 2-3 weeks’ time of repaying the car loan, you should receive all your documents from the bank via post at your registered address. But, there are still some unfinished tasks left for the borrower.

A number of borrowers assume their job is done after paying off the last equated monthly installment (EMI) on their car loan.

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