In the current loan industry, the most common ones are mortgage loans and pledge loans. Because of the word difference between these two loan methods, novices who come into contact with loans for the first time are often confused. This paper introduces the difference between mortgage loan and pledge loan in detail. Mortgage loan refers to a loan method adopted by some national banks. Require the borrower to provide a certain amount of collateral as a guarantee for the loan to ensure the repayment of the loan when it is due. Collateral is generally easy to keep, not easy to wear and tear, and easy to sell.

Pledged loan refers to the loan issued by the lender with the movable property or rights of the borrower or a third party as collateral according to the pledge method stipulated in the Guarantee Law. The pledge contract shall take effect from the date of delivery of the certificate of rights. If the personal savings deposit certificate is pledged, the identity certificate of the bank where the account is opened and the proof of stopping payment shall be provided.

I. Different collateral

The collateral of mortgage loan is usually real estate, such as land and houses; Special movable property: cars, boats, etc.

Pledged loans are mainly movable property, such as certificates of deposit and bonds.

It is worth noting here that vehicles can also be used to pledge loans. When using a vehicle to make a pledge loan, it is necessary to hand over the vehicle to the lending institution for safekeeping, and then get it back after paying off the loan.

Second, different forms of possession.

In principle, mortgage loans do not transfer the possession of collateral;

The pledge loan transfers the possession of the pledged property to the pledgee.

Third, the right of disposal is different.

When the debtor fails to repay the loan on time, the creditor has no direct right to dispose of the collateral, and needs to negotiate with the mortgagor or bring a lawsuit to the court to complete the disposal of the collateral;

Pledged loans do not need negotiation or court judgment, and creditors can dispose of the pledged property outside the time stipulated in the contract.

Fourth, the validity period is different.

The mortgage contract of the mortgage loan shall take effect from the date of signing;

The pledge contract of the pledged loan shall take effect from the date of delivery of the pledge or the certificate of rights.

The above is the difference between mortgage loan and pledge loan. When applying for a loan, we must pay attention to the differences between different loan methods. If it is overdue accidentally, your pledge may be directly handled by the bank.