Authorization to Collect No Objection Certificate from Bank

When you purchase a vehicle on loan from a bank, it will be registered in your name at the RTO, but the RC will have a note that endorses it in favour of the bank, which essentially means that the vehicle is hypothecated in favour of the bank until the total loan amount is paid up by the customer.

If you want to remove the hypothecation, then you have to either wait until the last EMI is paid, or you can pre-close the loan by paying the outstanding amount. Then you have to ask your bank for a NOC, which has to be submitted to the RTO and the insurance company.

Generally, the banks send the NOCs by post to the customers. Some banks have given online options at their Net Banking site to download the NOC. Hereunder is an example of an authorisation letter for collection of no objection certificate (NOC) from the bank by a person on behalf of a customer.

TEMPLATE

Date: ________

From

(Name of the Customer)

(Full Address)

Mob. _________

To

The Branch Manager

__________ Bank

__________ Branch

Sub.: Application for issue of NOC and authorisation to collect.

Dear Sir/Madam,

You are requested to issue an NOC in respect of the vehicle financed under the loan account number _____ in the name of ______________.

Details of the vehicle:

Make & Model _______, Registration No. ______, Engine No. _______, Chassis No. _______.

A copy of the RC book with hypothecation in favour of the bank and a copy of my identity proof are enclosed herewith. I need the NOC from you to submit at the RTO for removing the said hypothecation.

I have paid all the installments as needed. The last EMI was deducted on (Date). Please close the loan account and issue me a no objection certificate to that effect.

The NOC can be forwarded to my registered address. Otherwise, you can handover the NOC to the following person who would collect it on my behalf since I am unable to visit the bank as I am preoccupied with work.

Authorised Person:

Name: _____________. Address: ____________. Aadhar: _________. Signature: ________.

Kindly do the needful and oblige.

Thanking you,

Yours faithfully,

    (Signature)

(Name of the Customer)

Enclosure: As above.