While buying an old car, check hypothecation and loan status like this, otherwise you will get stuck.

Second Hand Car Buying a (used car) can be a budget-friendly and wise decision, but if you are not careful, this deal can also become a problem for you. Often people buy a car immediately after seeing its condition and price, but forget to check its legal documents. The biggest fraud occurs when there is an old bank loan pending on the car, which in technical language is called 'Hypothecation'.

If you buy a car without checking the loan status, then in future the bank may confiscate that car or you may have to repay the old loan. Therefore, before finalizing the deal, check some important documents and loan pendency. Let us know what things should be kept in mind while buying a second hand car?

How to check hypothecation?

When any vehicle is taken on loan, its RC (Registration Certificate) is hypothecated to [Bank Name] It is written. After the loan is over, it is necessary to take NOC (No Objection Certificate) from the bank. Check it like this-

Parivahan Sewa Website: You can check the 'RC Status' of the vehicle by going to the official 'Vahan' website of the government and entering the vehicle number. If hypothecation is visible active there, it means that the loan is still running on paper.

Checking these important documents is also very important

Apart from the loan status, ask for the following documents to avoid fraud:

• Original RC: Always check the original RC of the car. The owner's name, chassis number and engine number are recorded on it. The status of the loan is clearly written on the smart card RC.
• NOC of the Bank: If there was a loan on the car and the owner claims that the loan has been repaid, then definitely ask for the original 'No Objection Certificate' (NOC) and Form 35 issued by the bank. Without this the name of the bank will not be removed from the RC.
• Insurance Copy (Insurance Policy): Check whether the car insurance is valid or not. Also check whether any major accident claim has been taken in the previous records.
• PUC Certificate: Pollution Under Control Certificate is legally mandatory, check its validity.

careful wisdom

After checking the documents, while getting the ownership transfer of RC done in your name, do not forget to submit the NOC of the bank in the RTO, so that the hypothecation can be completely removed from the records of the car. A small carelessness can cause you huge financial loss, so make payment only after complete satisfaction.