Delhiites can soon skip visiting banks for hypothecating vehicle loans

Soon Delhiites will not have to visit banks for the hypothecate process for vehicle loans, according to a Delhi government statement issued on Wednesday.

“Directions have been issued to ensure no physical documents will be received regarding hypothecation addition and termination after October 31. Further, we’ve also clarified that banks or lending institutions will have to submit all the documents and NOC digitally through OTP generated on Aadhaar linked mobile number, and hence do away with any requirement of a physical signature,” said a statement quoting Delhi Transport Minister Kailash Gahlot, who convened a meeting with all the major banks offering vehicles loans on Wednesday.

“Delhi Transport has gone ‘faceless’ with an aim to increase transparency and once we have all the banks on board, the process of availing bank loans for vehicles in Delhi will be simpler than ever before,” the minister added.

Having partnered with ICICI Bank to allow automatic termination since the launch of faceless services, the Transport Department has received the data of over 7,800 applicants who have loans on vehicles so far.

“From the beginning of November, any applicant who has availed for vehicle loans from any financial institution will not need to visit the bank to physically submit documents. Once the loans are added or paid off, the data will be directly transferred by the bank to the VAHAN database, which will enable the department to verify and approve the HPT service,” an official communique stated.

Hypothecation services (HPT), including addition, continuation and termination of hypothecation on vehicle loans, are one of the most availed services of the Transport Department. Since the launch of faceless services on August 11, the national capital has received 7,111 applications for the same.