Question

A mortgage is created in which type of loan? 

A Personal Loan Correct Answer Incorrect Answer
B Housing Loan Correct Answer Incorrect Answer
C Vehicle Loan Correct Answer Incorrect Answer
D Trade Loans Correct Answer Incorrect Answer
E Consumer Loan Correct Answer Incorrect Answer

Solution

A mortgage is a way to use one's real property, like land, a house, or a building, as a guarantee for a loan. In case of Housing Loan, mortgage is created on the house which is kept as a collateral security for the loan provided.  Personal loans are unsecured loans. In Vehicle loan the vehicle is hypothecated as security. Similarly in Trade loans the good under the trade are hypothecated. In case of Consumer loans also the assets financed are hypothecated to the lender. Movable assets as in case of Vehicle loan, Trade Loan and Consumer loan are hypothecated while immovable assets (real estate) are mortgaged.  

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