These are the assets directly related to your business or project for which you have taken a loan and kept that as security These are any assets other than primary securities, which are kept as security against taking credit or a loan. A lien is the right to retain property in its possession till its banker’s dues are cleared by the borrower Hypothecation is used for creating charge against the security of movable assets. Pledge is used when the lender (pledge) takes actual possession of assets (i.e. certificates, goods ) MORTGAGE is used for creating charge against immovable property which includes land, buildings or anything that is attached to the earth or permanently fastened to anything attached to the earth. Assignment occurs when the owner of a contract, known as the assignor, gives a contract to another party, known as the assignee.

1. Presented by:
SUMANT KR.
SINGH
MBA/15017/15
PRESENTED IN
Class of :-
Amit Gaurav
SIR

2.  These are the assets directly related to your business or
project for which you have taken a loan and kept that as
security.
 So a primary security can be the thing that is being
financed.
 For example: a factory for which u have taken loan and
kept that as security, taken loan for a car and kept that as
security, etc.

3.  These are any assets other than primary
securities, which are kept as security against
taking credit or a loan.
 It can also be issued by a third party or any
intermediary.
 For example: taking a personal loan and
mortgaging your house, hypothecation of
jewellery against any loan, etc.

4.  Lien
 Hypothecation
 Pledge
 Mortgage
 Assignment

5. LIEN.
• A lien is the right to retain
property in its possession
till its banker’s dues are
cleared by the borrower.
• Lien gives banker only a
right to retain the
possession of the goods
and not the power to sell.

6. LIEN.
Thus lien is:-
• 1. A right of
retaining property
belonging to the
debtor.
• 2. till all dues due to
the borrower are
cleared.

7. HYPOTHECATION
• Hypothecation is used for
creating charge against the
security of movable assets.
• But here the possession of the
security remains with the
borrower itself.
• Thus, in case of default by the
borrower, the lender will have
to first take possession of the
security and then sell the same.

8. HYPOTHECATION
• The best example of
this type of
arrangement are Car
Loans. In this case Car
/ Vehicle remains with
the borrower but the
same is hypothecated
to the bank / financer.

9. PLEDGE
• Pledge is used when the lender
(pledge) takes actual
possession of assets (i.e.
certificates, goods )
• Such securities or goods are
movable securities.
• In this case the pledgee retains
the possession of the goods
until the pledgor (i.e. borrower)
repays the entire debt amount.

10. MORTGAGE
• MORTGAGE is used for
creating charge against
immovable property which
includes land, buildings or
anything that is attached to the
earth or permanently fastened
to anything attached to the
earth.
• The best example when
mortage is created is when
someone takes a Housing
Loan / Home Loan.

11.  In this case house is mortgaged in favour of
the bank / financer but remains in possession
of the borrower, which he uses for himself or
even may give on rent.

12. ASSIGNMENT.
• An assignment
constitutes an action
taken with a contract.
• Assignment occurs
when the owner of a
contract, known as
the assignor, gives a
contract to another
party, known as the
assignee.

13.  When it comes to loans, assignment can
relate to life insurance policies and
mortgage contract from one party to
another.