New Delhi, June 18 -- Closing your vehicle loan is a significant step in your credit journey. But closing the loan alone is not enough. You have to get the hypothecation removed from your vehicle's Registration Certificate (RC) to enjoy the full benefits of ownership.

Removing hypothecation is an essential final step, but many vehicle owners often overlook it. Hypothecation means the lender has a legal claim to the vehicle as collateral, and until it is removed, the RC continues to reflect joint ownership.

In recent years, the process has become more streamlined with the digitization of RTO (Regional Transport Office) services through the Vahan portal. Here is a primer on removing a vehicle's hypothecation status after a loan is closed,...