What is the difference between Pledge, Hypothecation and Mortgage ?

The following are the difference between Pledge, Hypothecation and Mortgage: Aspect Pledge Hypothecation Mortgage Possession Lender takes possession Borrower retains possession Borrower retains possession Ownership Borrower remains the legal owner Borrower remains the legal owner Borrower remains the legal owner Type of asset Gold, investment certificates, etc. Vehicles, equipment, machinery, etc. Real estate Default consequence The lender can sell the pledged asset The lender can seize the asset The lender can seize the property Regulatory framework Indian Contract Act, 1872 SARFAESI Act, 2022 Transfer of Property Act, 1882 Loan duration Short Term Short term to Mid Term Long Term