Form 35 is the single document that tells the RTO your car loan is closed and the bank's hypothecation can be removed from your RC. Its full name is the Notice of Termination of Agreement of Hire Purchase, Lease or Hypothecation. This guide explains what it is, how to fill it correctly, who must sign it at the bank, and how to submit it - so it is accepted the first time.
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Form 35 is the official form prescribed under the Central Motor Vehicles Rules, 1989 (Rule 61). Its full title is "Notice of Termination of Agreement of Hire Purchase/Lease/Hypothecation". When a vehicle is financed, the bank or NBFC is recorded on the RC as the financier. Form 35 is how the financier formally tells the RTO the agreement has ended - the loan is paid and the lien is released. Without it, the RTO cannot remove the hypothecation, even with full loan-closure papers.
Form 34 records a new hypothecation when a loan is sanctioned. Form 35 terminates it at loan closure. Form 36 records a change in the financier's details. For loan closure, you need Form 35.
You can download a blank Form 35 from parivahan.gov.in (MV Forms section) or your state transport site, but most banks issue a pre-filled Form 35 as part of the loan-closure set - which is more accurate. Request it explicitly along with the bank NOC.
Form 35 has two parts - Part I by the owner, Part II by the financier. Copy details exactly from the RC:
A single mismatched character can cause rejection, so check meticulously. Do not correct a bank-issued form yourself - request a fresh one instead.
This is the most common point of rejection. Form 35 must be signed by an authorised officer of the bank - typically a branch manager or designated operations officer with standing authority to execute hypothecation terminations, not any loan officer. A Form 35 signed by an unauthorised employee is legally invalid, and the RTO is right to reject it. If that happens, go back to the bank and insist on the correct signatory, with name, designation and employee ID.
Submit the signed Form 35 with the bank's NOC, original RC and ID proof, and pay the RC-update and ₹200 smart card fees. Vahan 4.0 states allow online submission via parivahan.gov.in. For the wider process, see the hypothecation removal guide, and check your RC status after the update.
Yes. Form 35 is available for download at parivahan.gov.in under the MV Forms section, but the downloaded form is blank. Most banks provide a pre-filled Form 35 as part of the loan-closure documents, which is the recommended approach because it minimises the risk of detail errors.
Form 35 must be signed by an authorised officer of the bank with specific authority to execute hypothecation terminations - typically a branch manager or designated operations officer. A signature from a regular loan officer or customer service executive may be rejected by the RTO if they lack the required authorisation.
All three are prescribed under the Central Motor Vehicles Rules, 1989. Form 34 records a new hypothecation when a loan is sanctioned, Form 35 is the Notice of Termination filed when the loan is paid off, and Form 36 records a change in the financier's details. For loan closure and hypothecation removal, you need Form 35.
Do not correct it yourself - handwritten corrections or white-out can lead to RTO rejection. Go back to the bank and request a fresh, correctly filled Form 35. Take a copy of your RC to the bank so the officer can verify the registration, chassis and engine numbers before filling the form.
Yes. Form 35 covers hire purchase, lease and hypothecation agreements. For a typical private car loan the agreement type is 'hypothecation'; for a company car under an operating lease it is 'lease'. The form structure is the same - only the type-of-agreement field changes.