Hypothecation
Hypothecation
Hypothecation is a legal and financial term commonly used in the context of secured loans, particularly in the finance and banking sectors. It refers to the act of pledging an asset as collateral to secure a loan without transferring ownership of the asset.
- Allows borrowers to access credit by using their existing assets.
- Lower Interest Rates compared to unsecured loans.
- Easier Loan Approval.
- Extended Repayment Terms.
Features & Benefits:
- Asset Eligibility
- Legal Ownership to the asset
- Valuation of Asset
- Credit Assessment
- Insurance on Asset
- Consent of Existing Lien Holders (if applicable)
