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Difference Between Pledge, Hypothecation and Mortgage

Pledge Hypothecation Mortgage
Type of Security Movable Movable Immovable
Possession of the security Remains with lender (pledgee) Remains with Borrower Usually Remains with Borrower
Examples of Loan where used Gold Loan, Advance against NSCs, Adv against goods (also given under hypothecation) Car / Vehilce Loans, Adv against stock and debtors Housing Loans

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