Question

Loans obtained from pawn broken by pledging movable property are called _________loans
(A)Term
(B) Production
(C) Chattal
(D)All of these​

Answer 1

Answer:

option C is correct, chattal

Answer 2

Answer:

(C) Chattel

Loans obtained from pawn broken by pledging movable property are called Chattel loans.

Explanation:

A chattel mortgage is a loan given to a person or a business secured by movable property. In this case, the loan can be extended with the help of the "chattel," or movable personal property, which could be a car or a mobile home. Chattel mortgages are secured loans that are tied to movable personal property and used to extend credit to private individuals or business owners.

• In the conventional setup, a person receives a loan based on the security they offer, which is typically in the form of real estate such as a house or land.
• A loan is provided to a borrower who is secured by "chattel" under a chattel mortgage, and the bank retains a lien on the collateral until the full amount is repaid.
• These mortgages typically have lower interest rates.

• These are typically obtained by giving pawn brokers movable items as collateral. These are used as loan collateral, and the lender owns a portion of them.
• It differs from a conventional mortgage, which is secured by a lien on a fixed asset like a home or commercial building.