Difference between Pledge and Hypothecatio

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Difference between Pledge and Hypothecatio

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I want to know difference between Pledge and Hypothecation

Tell me is their any difference in pledge and Hypothecation

hiiii preeti .vivek here iam a pcc student and having my attempt in nov.08 so please provide me guidance how to complete my course of activity before exams......... provide me guidance how to study i will bw waiting for ur rply

Pledge & Hypothecation terms are commonly used in banking.

Pledge is a form of security to assure that a person will repay a debt under contract. In Pledge borrower temporarily gives possession of the property to the lender.

Hypothecation is also a form of security in which the borrower offers assets owned by him viz : stocks, bonds, other movable assets as Collateral Security for loan without transferring title to the lender. However, the lender gets a right to sell the property in the event of default by the borrower.

Hi Preethi,


Pledge means possessing the movable property whereas Hyphothecation is possessed on immovable property.


Possession of property will be with the lender in case of hyphothecation possession of property will be with borrower itself 


 


 


 


 

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.

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.

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.

can u tell some more point for differentitate between hypothecation nd pledge.

Nedd some deep difference between pledge and hypothecation


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