What are the differences among Mortgage, Pledge and
Hypothecation ? please any body reply me in simple language
as I have read many articals on it still I find my self
anble to explain it, I always get confused.
If want to tell personally please send me email or add me
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My ID is rohitash.shrm@gmail.com
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Answer Posted / mrinal bhandari
Mortgage:- In mortgage,the asset is given as a security to obtain a loan.The physical possession of the asset can be parted(but transfer of possession is NOT necessary).The owner of the asset has NO RIGHT TO SELL THE ASSET.
Pledge:- The assets are PHYSICALLY TRANSFERRED as security to obtain a loan.
Hypothecation:- In this case the asset remains with the borrower.However, he has the RIGHT TO SELL the asset in NORMAL COURSE OF BUSINESS
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