Hypothecation genuinely means providing something as security for any form of debt. However, although a collateral security is provided the borrower frequently does not have to go over physical custody of the collateral although the lender is...
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Hypothecation genuinely means providing something as security for any form of debt. However, although a collateral security is provided the borrower frequently does not have to go over physical custody of the collateral although the lender is “hypothetically” in regulator of the guarantee. Best difference between mortgage and hypothecation
Mortgage is a commonly used term in finance and economics sectors. It means to possess one’s immovable possession as collateral, usually a house, in return of a loan. This is done by signing official loan agreement, with clear bring up of the house or possessions being mortgaged against the advance. This type of loan is called a secured loan since the house is used to secure funds. The home stays with the lender or the lend association for the length till which the borrower repay the advance. Thus, it is collateral against the financial risk that is taken by the lender. In case the borrower is not capable to refund the loan, this mortgaged asset is
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