Home / News / India /  Delhi govt asks banks to integrate vehicle loan data with VAHAN portal

People who have taken vehicle loans in Delhi do not need to visit bank branches or transport department's office from November. Delhi government has asked the banks, financial institutions and NBFCs to  integrate vehicle loan data with the VAHAN portal of the Ministry of Road Transport and Highways. 

The transport department in an statement said, any applicant who has taken a vehicle loan from any financial institution need not visit the bank or physically submit any document.

It said, no physical documents needed for hypothecation of vehicles in Delhi after October 31. 

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.

Delhi Transport Minister Kailash Gahlot said, “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."

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.

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