Actually I'm confused between hypothecation and pledge. Is the two same ? If no, then what is the difference?
There is difference between hypothecation and pledge. Pledge means bailment of goods as security against the loan. Hypothecation is creation of charge on movable property without delivering them to the lender. In pledge Possession of the property remains with lender. Whereas in Hypothecation Possession of the property remains with borrower.
by Shubhamm Sir
at 03-Jan-2023 01:32 AM