Difference between

Dear Ayushi,

The main distinction between a charge and a mortgage is that in the case of a charge there is no transfer of interest in the property but only the creation of a right of payment out of the property while a mortgage amounts to a transfer of interest in the property.  

A charge cannot be enforced against the property in the possession of a person to whom it has been transferred for consideration and without notice of the charge while a mortgage can be enforced even against a transferee for consideration without notice of the mortgage.

Hypothecation involves movable property, which is given as security for the loan. Possession of movable property remains with the debtor.

In the case of pledge too, movable property is the security. Here, the creditor is given possession of the movable property.

Regards,

Veeral Gandhi

Mortgage
A mortgage is a lien on a property/house that secures a loan and is paid in installments over a set period of time. The mortgage secures your promise that you'll repay the money you've borrowed to buy your home/property.

Pledge
Something given or held as security to guarantee payment of a debt or fulfillment of an obligation.

Hypothecation
It is a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor as a security for financial assistance.

Difference;
In a mortgage there is transfer of interest in the immovable property till the re-payment of the loan and borrower has to sign GPA in favour of bank which remain worthy until the full& final payment though Hypothecation involves movable property which is given as security for the loan and the possession of movable property remains with the debtor. In the case of pledge too, movable property is the security. Here, the creditor is given possession of the movable property.

Thankyou ....but can you explain me what do u mean by transfer of interest?....please give examples...

Also tell me what is full form of GPA?

Can you also explain me diff between CC and OD ??

A transfer of interest is a transfer of ownership of any object, real property, or business entity from one party to another. Most often, though, a transfer of interest refers to the transfer of one party’s ownership in a business. This may refer to an interest in a partnership, a limited liability company (LLC), corporation, or other business entity. Generally the transfer will be executed through a transfer of interest agreement.

Not fully sure about Transfet of INterest Wait for Other Comment.......

Difference between CC and OD:

Cash credit is a part of working capital finance against hypothecation of stock where periodical stock statement to be submitted.

Overdraft is a fixed limit allowed to a current account for overdrawing the funds from the account (i.e. debit balance). it can be fully secured or partially secured as apart of credit facility to a business entity