Hypothecation Loan Meaning

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When you mortgage your house, your house acts as a collateral. If you fail to make the repayment, the lender-- usually a bank-- can take it back and recover your losses.
Hypothecation does not mean that you give up your ownership rights. When the lender seizes the property in the event that you fail to repay as per the agreement, they can not claim the income from the property.

Hypothecation is a tool that you can use to secure a loan at a low cost. It is a method of taking out a loan that provides assurance to the lender, thereby reducing the interest rate you pay.

Hypothecation Loan Meaning

When you agree to use a property as collateral when you sign up for the loan, hypothecation is.

In this post, we answer the question: What is Hypothecation? For more information, read.


Hypothecation Loan Meaning in Hindi

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