Remove Bank Lien From Car Registration in Islamabad: HPT Fee Nil, Bank NOC and Steps
Removing a bank lien from an Islamabad car registration has a nil HPT fee; recording a loan costs Rs 1,200 to Rs 3,000. See the NOC, documents and steps.
Removing a bank's name from a car registered in Islamabad costs nothing in Excise fees: the hire purchase termination (HPT) fee is nil for every vehicle, and you need the bank's NOC. Recording a new bank loan on a car, the hire purchase agreement (HPA), costs Rs 1,200 to Rs 3,000. Below are both tables, the papers, and the mistake that leaves a paid-off car in the bank's name for years.
We read the Excise and Taxation Department's hire purchase page and its fee schedule on islamabadexcise.gov.pk on 27 October 2026. The law it cites is Section 51 of the Motor Vehicles Ordinance, 1965, which covers vehicles under hire purchase, lease or hypothecation.
A bank lien in Islamabad means the bank is the legal owner until you pay
When a car is bought on bank finance, Islamabad Excise records the agreement on the registration certificate. The department says the financing company is recorded as legal owner until full payment, and it tells the registering authority through a No Objection Certificate (NOC) once the loan ends.
That record is what people call a "bank lien" or "HPA mark". It does two things. It stops you transferring the car without the bank's consent, and it tells any buyer that money is still owed on it.
Paying the last instalment does not remove the mark by itself. The bank has to issue its NOC, and the record has to be updated at Excise. Until both happen, the card still names the bank.
The HPA fee is Rs 1,200 to Rs 3,000 and removal is free
Islamabad's schedule charges Rs 1,200 to record a hire purchase agreement up to 1000cc, Rs 2,000 from 1001cc to 1800cc and Rs 3,000 above 1800cc. The termination fee, HPT, is listed as nil for all categories.
| Engine size | HPA fee (record a loan) | HPT fee (remove it) |
|---|---|---|
| Up to 1000cc | Rs 1,200 | Nil |
| 1001cc to 1800cc | Rs 2,000 | Nil |
| Above 1800cc | Rs 3,000 | Nil |
The HPA fee is paid once, when the loan is recorded. The HPT side is the one owners tend to forget, and since it is free, there is no money reason to put it off.
If the update produces a new smart card, the schedule lists a separate Rs 2,400 smart card fee. The department does not say whether it applies to a termination. Ask before you pay anything.
How to remove the bank's name from an Islamabad car registration
Get the NOC from your bank after the final payment, then take it to the Excise office in Sector H-9 with your original registration card and CNIC. The termination fee is nil. Ask the counter which form and inspection, if any, it needs.
- Pay the final instalment and ask the bank for a loan closure letter and the NOC addressed to Excise and Taxation, Islamabad.
- Check the NOC names your car correctly: registration number, engine number and chassis number.
- Take the NOC, the original registration card or certificate and a CNIC copy to the Excise office in Sector H-9.
- File the termination. The schedule lists the HPT fee as nil.
- Collect the updated card, and check that the bank's name is gone before you leave.
The department's site describes the NOC as the way the financier informs the registering authority. It does not publish a separate step list for termination, so the order above is ours. Call 051-111-383-383 to confirm what to bring.
Recording a new bank loan needs six documents
For an HPA entry, Islamabad asks for the original hire purchase agreement, CNIC copies of the buyer and the financier, an NOC from the financing company, the original registration certificate, a copy of the vehicle's insurance and the HPA fee challan.
The process the department gives is short: submit the agreement, verification, entry in the register, and endorsement on the registration certificate. Ask your bank who files it, you or the bank, so it is not missed.
Insurance is on the list, so the car must be insured before the entry is made. If you are comparing loans, the costs beyond interest are set out in car financing rates and limits in Pakistan.
A forgotten lien blocks a sale years later
An Islamabad transfer needs an NOC from the financing bank or leasing company if the car is on lease or finance. If the lien was never removed, the buyer's transfer stops at the counter until the original bank issues one.
Getting an NOC for a loan closed five years ago, from a branch that may have moved, is slower than getting it the week you finish paying. That is the whole argument for doing the termination at once.
There is a second reason when you are the buyer. A lien on a used car means a bank may still have a claim on it. Before paying, verify the Islamabad vehicle record and ask the seller for the closure letter and NOC if a bank appears. The rules for a bank seller are different: Islamabad's number policy says that when a bank or leasing company sells, the registration number moves with the car to the buyer.
| You are | What to ask for |
|---|---|
| Owner who just paid off the loan | Closure letter and NOC from the bank |
| Buyer of a car with a lien | Seller's NOC, or the lien removed before you pay |
| Buyer from a bank or leasing company | Transfer letter on the bank's letterhead |
Punjab has its own procedure for the same job, explained in removing a bank lien in Punjab.
Common questions
What is the fee to remove a bank lien in Islamabad?
Nil. The Excise schedule lists the HPT fee as nil for every engine size.
What does HPA mean on my car registration?
Hire purchase agreement. It means a bank or financing company is recorded on the card until the loan is paid.
Can I sell a car with a bank lien in Islamabad?
Not without the financier. The transfer document list includes an NOC from the financing bank or leasing company.
Who issues the NOC for lien removal?
The bank or leasing company that financed the car. The department says the financier informs it through the NOC.
How much is the HPA fee for a 1300cc car?
Rs 2,000, the rate for 1001cc to 1800cc on the Islamabad schedule.
Do I need to bring the car for lien removal?
The site does not say. Ask on 051-111-383-383 before you go.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 27 October 2026. The legal basis, the HPA document list and process, the HPA and HPT fees, the transfer NOC rule and the bank seller number rule come from the Excise and Taxation Department, Islamabad, at islamabadexcise.gov.pk, read on 27 October 2026. The termination steps are our order, because the site publishes none. We did not remove a lien ourselves. The department works under the Islamabad Capital Territory Administration.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
