Delhi govt asks banks to integrate their vehicle loan data with VAHAN portal

Delhiites who have taken loans on their vehicles need not visit a bank or the transport department's office after October as the city government has asked the banks, financial institutions and NBFCs to integrate their vehicle loan data with the VAHAN portal of the Ministry of Road Transport and Highways.

Any applicant who has taken a vehicle loan from any financial institution need not visit the bank or physically submit any document, according to a statement issued by the transport department on Monday.

''No physical documents needed for hypothecation of vehicles in Delhi after October 31,'' it said.

Hypothecation is the process whereby the ownership of a vehicle taken on loan and held as collateral by a bank or a lending agency is restored to its buyer.

''We had, in the last month set a strict deadline to take all banks on board for integrating their data with VAHAN to allow termination on hypothecation services and I am happy to see that the process has picked pace and is nearly complete,'' Delhi Transport Minister Kailash Gahlot was quoted as saying in the statement.

With this circular, the ''no-objection certificate'' (NOC) for hypothecation termination from banks and other financial institutions will be received only in the digital format at the VAHAN platform of the National Informatics Centre (NIC), the statement said.

Hypothecation services, including addition, continuation and termination on vehicle loans, are one of the most availed services of the transport department under its ''Faceless Services'' initiative launched in August.

Private banks HDFC and ICICI together account for 70-80 per cent of all the vehicle loans in Delhi and have already integrated their loan-related data with the VAHAN portal, according to the statement.

Delhiites need not visit a bank for the NOC as they can directly apply for hypothecation removal on the transport department's website under ''Faceless Services''.

Earlier, after the foreclosure of a loan, an applicant had to apply for termination of hypothecation and submit Form 35 and an NOC from the bank within 90 days.

The circular says from November 1, the banks or financial institutions that fail to integrate the data with the VAHAN portal would not be allowed to enter their data of hypothecation into the transport department's database. PTI VIT RC

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