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What is the difference between Mortgage, Pledge and
Hypothecation? Reply.....

Answers were Sorted based on User's Feedback



What is the difference between Mortgage, Pledge and Hypothecation? Reply.......

Answer / r sumitra

pledge is the bailment of goods as a security for debt or
performance of promise
mortgage is charge on immovable property
hypotheciation is charge on movable property

Is This Answer Correct ?    23 Yes 7 No

What is the difference between Mortgage, Pledge and Hypothecation? Reply.......

Answer / rajkiran

Mortgage is charge on immovable property. e.g. land, house, e.t.c. (an exception is ships, though they are movable)

Pledge or Hypothecation is charge on movable assets.

Pledge is when the lender takes the possession of goods, e.g. gold, certificates, e.t.c. In case of a default by the borrower, the ownership is transferred to the lender.

Hypothecation is when the possession of the goods is with the borrower, e.g. vehicle loans, loan against stocks. In case of a default by the borrower, the possession and ownership will be transferred to the lender.

Is This Answer Correct ?    0 Yes 0 No

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