04 April 2016
Hypothication is a charge created security of movable property but there the possession of the security remains with the borrower itself. like car, vehicle loan
Mortgage is used for creating charge against immovable property anything attached to earth like land, building
Pledge is used when lender takes actual possession of Assets .pledgee retains the goods until the borrower repays the entire debt anount. Gold loan, FD loan,jewellery loan etc.
05 April 2016
Pledge you have to borrow money by pledging movable Asset for eg loan against gold or FD you have to pledge the property. Till repayment it is vested with pledgee.
In Hypothication only you have to Hypothicate documents but asset vested with you eg Car loan. You have to pledge RC book,B extract other documents .
CAclubindia
