02 May 2011
Mortgage: The asset will be with you. there will not any change in the nomenclature of the asset. For eg. Building, car, etc., Term loan on fixed assets.
Pledge : The physical position will be with the person from whom loan has been taken. EG Jewel loan.
Hypothication : The item will be fixed. But individual items will vary from time to time. Eg stock, Debtors. OD from banks on hypothication of stock and detbtors
an asset is mortgaged to the bank for a loan. securities and certificates are pledged (submitted) for loan. a vehicle is Hypothecated to a bank which finances it.
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