Banking / Finance Law
Pledge
The transfer of possession (but not ownership) of movable property to a lender as security for a debt, giving the lender the right to sell it if the debt isn't repaid.
Common examples include pledging gold jewellery for a gold loan, where the lender holds physical possession of the pledged item until the loan is repaid, and can sell it to recover dues if the borrower defaults.
Unlike a mortgage (typically used for immovable property), a pledge specifically applies to movable property and involves actual or constructive transfer of possession.
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