A mortgage involves the transfer of the title to an asset as security for a liability. A conveyance of land or an assignment of chattels as a security for the payment of a debt or the discharge of some other obligation for which it is given. This is the idea of a mortgage: and the security is redeemable on the payment or discharge of such debt or obligation.’

**DIFFERENCE BETWEEN MORTGAGE AND CHARGE** Mortgage has been defined under Transfer of property act 1882 Charge has been defined under companies act 1956. In a mortgage property interest in immovable property is to be transferred. In charge only a future right is given by way of an agreement. Mortgage is created on immovable property. Charge can be created on movable as well as fluctuating property. Mortgage registration is compulsory In charge registration is not mandatory Thanks

Hello Uma > Difference between mortgage and charge **What is a mortgage? -** A mortgage involves the transfer of the title to an asset as security for a liability. A conveyance of land or an assignment of chattels as a security for the payment of a debt or the discharge of some other obligation for which it is given. This is the idea of a mortgage: and the security is redeemable on the payment or discharge of such debt or obligation.’ There are two elements of a mortgage:- -----1. In the first place, title to an asset must be transferred to the creditor or to someone on his behalf. If it is legal title which is transferred, the mortgage is a legal mortgage. If beneficial title is transferred, it is an equitable mortgage. Either way, the creditor obtains a proprietary interest which remains effective in the insolvency of the debtor. It is not necessary for the creditor to take possession of the asset. -----2. The second element is that the transfer must be by way of security. The creditor is not intended to have the absolute entitlement to the asset concerned. **What is a charge?** A charge is less easy to define. A charge as being a proprietary interest granted by way of security without a transfer of title or possession. It is also common to describe a charge as the appropriation of an asset in discharge of a liability. there are two elements of a charge:- ------1. The creditor obtains an equitable proprietary interest in the secured asset, but does not obtain either legal or beneficial title to it. Nor is it required that the creditor takes possession of it. ------2. The creditor’s interest is given to him by way of security for the discharge of a liability so that, when the liability has been discharged, the charge terminates. A chargee does not obtain legal or beneficial title to the asset concerned, his powers of enforcement are more circumscribed than those of a mortgagee. Unlike a mortgagee, a chargee does not have a right of foreclosure or, in the absence of express provision in the charge document, a right to possession of the charged asset. It has been seen that a mortgagor’s equity of redemption enables the mortgagor to require the re-transfer of the asset to him on payment of the secured debt. This is not necessary where the creditor only has a charge over the asset concerned, because the charge terminates as soon as the secured liability has been paid.

Hie Uma, **Difference between Mortgage & Charge is follows :-** **Charge** - There are two types of charges; fixed charges and floating charges. - A fixed charge refers to a loan or mortgage of some kind that uses a fixed asset as collateral to secure loan repayment. - Fixed assets that can be used as collateral in a fixed charge include land, machinery, buildings, shares, and intellectual property (patents, trademarks, copyrights, etc.). - In the event that the borrower defaults on his loan, the bank can sell the fixed asset and recover their losses. - The borrower/debtor cannot dispose the asset and the asset must be held by the borrower until the total loan repayment is made. - A floating charge refers to a loan or mortgage on an asset that has a value that changes periodically to secure loan repayment. - In this case, assets that do not have a constant value, or are not fixed assets such as stock inventory can be used. **Mortgage** - A mortgage is a contract between the lender and the borrower that allows an individual to borrow money from a lender for the purchase of housing. - Mortgages apply for property that is immovable such as buildings, land, and anything that is permanently attached to the ground (this means that crops are not included in this category). - A mortgage is also an assurance to the lender which promises that the lender can recover the loan amount even if the borrower defaults. - The home that is being purchased is offered as security for the loan; which, in the event of default, will be seized and sold by the lender who will use sales proceeds to recover the loan amount. - The possession of the property remains with the borrowers (as they will usually reside in their home).

Hello Uma, The basic difference between the two is mentioned below. A “mortgage” is a conveyance of property, subject to a right of redemption, whereas a charge only gives a right to payment out of a particular immovable property without transferring it. A “mortgage” can be enforced against a bonafide purchaser for value whether with or without notice but a charge cannot.