Difference between Hypothecation and Pledge :

HYPOTHECATION	PLEDGE
A Applicable to movable goods/assets	Applicable to movable goods/assets
B Ownership remains with the borrower	Ownership remains with the borrower
C Possession remains with the borrower	Possession is held by the lender
D Defined under SARFAESI Act	Defined under Indian Contract Act
E Legal document is hypothecation Agreement	Legal document is deed of pledge
F In case the borrower is a Limited Company registration of charge with ROC is a must	In case the borrower is a Limited Company, registration of charge with ROC is not applicable