"Welcome to The Finance Scholar! In today's video, we're breaking down three essential types of security in lending: Pledge, Hypothecation, and Mortgage. Whether you're a borrower or lender, understanding these terms can help you navigate loans more effectively.
Pledge: When goods like gold are transferred to the lender as security, with possession given to them. Think of a gold loan where the bank keeps the gold as collateral.
Hypothecation: Here, movable assets such as vehicles or inventory are charged, but the borrower keeps possession. A car loan is a perfect example of hypothecation.
Mortgage: Involves using immovable property like land or a house as collateral for a loan. Home loans often involve mortgaging a property, where the borrower retains possession.
We’ll also cover the rights of lenders in case of default and how each type of security works in the real world. Stay tuned to The Finance Scholar to learn more about the fascinating world of finance!
If you found this video helpful, don’t forget to Subscribe, Like, and Share!
#Finance #Loans #Pledge #Hypothecation #Mortgage #Banking #FinancialLiteracy #LoanSecurity #GoldLoan #CarLoan #HomeLoan #FinancialEducation #TheFinanceScholar"
This should encourage viewers to engage with your channel!