Remove a Bank Lien From Your Car Registration in Punjab After the Loan
Paid off a car loan in Punjab? Remove the bank lien from your registration with Excise: the bank NOC, five papers, token tax first and the steps to follow.
When you finish paying a car loan in Punjab, the bank's name stays on your registration until you remove it. Take the bank's NOC or clearance certificate, a plain-paper application, your CNIC copy and the original registration certificate with token tax paid to your district Excise office. Excise calls this termination of the hire purchase agreement.
Paying the last instalment does not clean the record by itself. Your car was registered with a hire purchase agreement, or HPA, which records the bank as the lessor, meaning the party that financed it. Until Excise ends that agreement on its record, the bank's interest stays on the car. We read the Excise and Taxation Department's registration page on 2 October 2026, and the paper list below is taken from it word for word.
What the bank's name on your registration means
A car bought on a bank loan or lease in Punjab is registered with a hire purchase agreement. That agreement records the bank as lessor on the Excise record. It stays there after the loan ends, until the owner applies to Excise to terminate it.
The bank pays for the car, you repay the bank, and the bank's interest is endorsed on the registration so you cannot quietly sell a car it still finances. That protects the bank while you owe money. Once you have paid, it only gets in your way.
The trouble usually shows up years later. A buyer checks the car and sees a bank on the record. Or you go to transfer the car and the counter tells you the HPA is still live. Clearing it right after the last payment is far easier than chasing a bank letter for a loan you closed five years ago.
If you have not taken the loan yet, our breakdown of what a car loan in Pakistan costs sets out the limits and rates.
The five papers Excise asks for
Excise Punjab lists five items for terminating a hire purchase agreement: your application on plain paper, the NOC or clearance certificate from the bank, a copy of your CNIC, the original registration certificate with token tax paid, and the original file if your car is on the File Return Scheme.
| Paper | Where it comes from | What to check |
|---|---|---|
| Application for termination of HPA | You write it on plain paper | Name, CNIC, registration number, chassis number, bank's name |
| NOC or clearance certificate | The bank or leasing company | It names your car and says the loan is fully paid |
| Copy of CNIC | You, the lessee | Matches the name on the registration |
| Original registration certificate | Your book or smart card | Token tax paid up to date |
| Original registration file | Only for cars on the File Return Scheme | Skip this if your car is not on that scheme |
The token tax line catches people out. Excise asks for the registration certificate "containing update payment of Token Tax", so pay any arrears first. You can pay Punjab token tax online before you go.
How to remove the bank's name, step by step
Ask the bank for its NOC as soon as you pay the final instalment. Then clear token tax, write the application, and take the full set to the Motor Registration Authority at your district Excise office. Keep the receipt and track the case until the record changes.
- Get the bank's NOC. Ask your branch or the bank's auto finance unit for the clearance letter. Check that the registration number, engine number and chassis number are correct before you leave.
- Clear token tax. The original registration certificate must show token tax paid up to date.
- Write the application. A plain sheet is enough. Ask Excise to terminate the hire purchase agreement on your vehicle and remove the bank's endorsement.
- Book a visit if you can. Excise runs an appointment portal at appointment-excise.punjab.gov.pk, linked from its home page.
- Submit at the district Excise office. Hand in the application, NOC, CNIC copy and original registration certificate. Add the original file only if your car is on the File Return Scheme.
- Pay any fee the counter charges and keep the receipt.
- Track and check. Follow the application on e-MTTS Punjab, then confirm the bank no longer appears when you check car registration in Punjab.
The fee Excise lists, and the one it does not
Excise publishes the fee for adding a hire purchase agreement to a registration, but its pages do not list a separate fee for ending one. Ask at the counter and pay only against a printed receipt or a PSID.
The endorsement fees on Excise's motor vehicle tax page are the ones paid when the bank's agreement is first recorded:
| Vehicle | HPA endorsement fee |
|---|---|
| Motorcycle or scooter | Rs 150 |
| Car up to 1000cc | Rs 1,200 |
| Car from 1001cc to 1800cc | Rs 9,075 |
| Car above 1800cc | Rs 1,850 as printed |
| Heavy transport vehicle | Rs 9,075 |
The above-1800cc figure is printed as Rs 1,850, lower than the band below it. That looks like a typing error on the page, so treat it with care. None of these is a termination fee. We could not find one published.
A new smart card costs Rs 1,300 on the same page. Ask the counter whether your updated record comes with a new card and whether that fee applies.
Remove the lien before you sell the car
Clear the hire purchase agreement before you put the car up for sale. A buyer who checks the record will see the bank, and the transfer needs your original registration certificate with the record in order.
Excise's transfer list asks for the transfer order form, both CNICs, witnesses, and the original registration certificate with token tax paid. Arrive at a car ownership transfer in Punjab with the bank still on the record, and you are likely to be sent back to get the NOC first. If you are the buyer, ask the seller for the bank's clearance letter before you pay anything.
If the bank has merged or closed, ask the bank that took over its loan book for the NOC. Excise wants a clearance from the lessor, and that is now the successor bank.
Common questions
How do I remove the bank's name from my car registration in Punjab?
Apply to Excise for termination of the hire purchase agreement. Take the bank's NOC, a plain-paper application, your CNIC copy and the original registration certificate with token tax paid.
Does the bank remove its name automatically when I finish paying?
No. The bank gives you a clearance letter. You take it to Excise, and Excise ends the agreement on its record.
What is the fee to terminate an HPA in Punjab?
Excise's pages do not list one. They list only the fee for adding an HPA, from Rs 150 for a motorcycle to Rs 9,075. Ask at the counter and pay against a receipt.
Can I sell my car before the HPA is removed?
You should not. The bank stays on the record, and a buyer who checks will see it. Clear the agreement first.
What if I lost the original registration book?
Get a duplicate first. Excise asks for a police report, your CNIC copy and token tax proof, and its pages give the duplicate fee as Rs 1,300 on one page and Rs 500 for a car on another.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked on 2 October 2026. We read Excise Punjab's vehicle registration and post registration page, which lists the papers for termination of a hire purchase agreement, transfer and a duplicate certificate, and its motor vehicle tax page, which lists the HPA endorsement and smart card fees. Neither page lists a fee or a processing time for termination, so we have not stated one. The Urdu instruction PDF linked from the registration page is a scan we could not read.
About the author
Public Services and Education Journalist
Fajr Riaz is a journalist and content writer at Pakistan Era, based in Lahore. She covers the questions people meet in everyday life in Pakistan: how a public service works, what a change in the rules means, and where to find a reliable answer.
