POF- sale of car

[vipulgoyal88]

Hi guys, so I am planning to sell my car to meet fund requirement. What all documents would be needed? If I produce the current registration certificate of car with my name, a sale deed mentioning price and cheque no used for payment and price and other details etc, copy of cheque deposited, will that be enough?

It was earlier on loan which I had repaid, do I need to produce any proof that it's not currently on loan?

 

[Asivad Anac]

Depends. If the POF in your particular case is less than or equal to current sale price of the car, these documents should be enough. If not, you might need other documentation to prove the balance funds as well (if your bank account shows unreasonably large credit transactions in the past 6 months).

Ignore the loan bit - CIC doesn't care about that - just focus on the absolute amount of monies in the bank.

 

[vipulgoyal88]

There are other funds, accumulated from salary, but there is fine shortage. So the option is to either sell my car or have my dad gift funds to me. I guess selling the car is better. Will I need to show the transfer documents as well? I mean that the car has been transferred to the buyer? Because buyer wouldn't provide that

 

[Asivad Anac]

Ownership transfer would definitely be conclusive proof but I imagine that might not be necessarily required to convince the officer. If you can't provide that, the other documents together would suffice.

 

[vipulgoyal88]

Thanks asivad, one last question, the registration certificate says "hypothecated to xxx bank". Basically that's an indication that a loan was taken, to get it removed, I will have to do a lot of paperwork and get a new registration certificate. If I just submit a copy of the certificate as it is, will this hypothecation thing be a problem?

 

[Asivad Anac]

Thanks asivad, one last question, the registration certificate says "hypothecated to xxx bank". Basically that's an indication that a loan was taken, to get it removed, I will have to do a lot of paperwork and get a new registration certificate. If I just submit a copy of the certificate as it is, will this hypothecation thing be a problem?

That's a lot of detail and I'm fairly certain that CIC would be more keen on scrutinizing your claimed ownership of the asset and sale proceeds than the details of lien on the asset. Is there a way to prove ownership of the asset without the loan showing up? Given that you can't sell your car without repaying to your bank, can you show a no dues certificate from the bank as well? If you can't do these, just submit what you have and let CIC figure out if they deem it conclusive - that's the best you can do.