In the loan market, many people are confused by the professional vocabulary with only one word difference. For example, mortgage loans and pledge loans, many novices are very confused after reading them. The two loan methods are different in collateral and pledge. The so-called mortgage loan means that the collateral belongs to the borrower and can be used by the borrower without bank custody. General collateral is real estate, land, cars, machinery and equipment. On the other hand, the form of custody of pledged loans is just the opposite. Pledges need to be kept by banks, and borrowers generally cannot use them. Pledges are usually bonds, insurance policies, warehouse receipts, bills of lading, stocks, trademark exclusive rights and other movable property or rights.

Legal objectivity:

When it is impossible to obtain bank credit loans, or the credit loans provided by banks are difficult to meet the needs, small and medium-sized enterprises can provide collateral to banks to obtain loans. Mortgage means that the debtor or the third party does not transfer the possession of the property and takes the property as the guarantee of the creditor's right. When the debtor fails to perform the debt, the creditor has the right to discount or give priority to the payment from the auction or sale of the property. When SMEs provide collateral to banks, the risk of bank loans to them is greatly reduced, so banks are often willing to provide loans to these enterprises. According to the guarantee law, the following properties can be mortgaged: (1) houses owned by the mortgagor and other things fixed on the ground; (2) Machines, vehicles and other property owned by the mortgagor; (three) the right to use state-owned land, houses and other fixed objects on the ground that the mortgagor has the right to dispose of according to law; (4) State-owned machinery, vehicles and other property that the mortgagor has the right to dispose of according to law; 5] The land use right of barren hills, gullies, hills and beaches contracted by the mortgagor according to law and mortgaged with the consent of the employer; (six) other property that can be mortgaged according to law. The guarantee law stipulates that the following property shall not be mortgaged: (1) land ownership; (two) the right to use collectively owned land, such as cultivated land, homestead, private plot and private plot; (3) Educational facilities, medical and health facilities and other public welfare facilities of schools, kindergartens, hospitals and other institutions and social organizations; (4) Property whose ownership and use right are unknown or controversial; (5) Property that has been sealed up, detained or supervised according to law; [6] Other properties that may not be mortgaged according to law. The mortgagor and the mortgagee shall conclude a mortgage contract in written form, which shall include the following contents: (1) the type and amount of the principal creditor's rights to be secured; (2) The time limit for the debtor to perform the debt; (3) Name, quantity, quality, condition, location, ownership or right to use the mortgaged property; (4) The scope of mortgage guarantee; 5] Other matters that the parties think need to be agreed.