Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

difference between mortagage, hypotheecation and pledge?

abhishek bhatt (CA student) (136 Points)

09 January 2009

plse tell me what is difference between mortagage, hypothecation and pledge?

Reply
Follow
Share

2 Replies

madhur gupta (student/article ) (1022 Points)
Replied 10 January 2009

mortgage:for fixed assets

hypothetication:for current assets,under this u can sale the stock etc.also but not under mortgage

pledge:when actual possession of asset is hand-over to lender

Upgrade to CAclubindia Pro. Subscribe Now!

Prakash Popat (3134 Points)
Replied 11 January 2009

Mortgage is possession njoy by borrowrs and may be for fixed assets long duration,hypothecations for current asstets like, INVENTORIES,possessions enjoy by borrowers as trustee of lenders and could rotate the inventories, and PLEDGE is practically physical possessions of assets to be controlled by bankers.