Working Capital Management Question:
Download Questions PDF

What is Pledge?


Pledge is a mode of security in which bank extends the assistance to the company against the security of movable property. But the possession of the goods is with the bank and the goods pledged are in the custody of the bank. Thus, it becomes the duty of the bank to take care of the goods in the custody. In case the company is unable to repay the amount of assistance, the bank has the right to sell the goods pledged to realize the outstanding amount.

Download Working Capital Management Interview Questions And Answers PDF

Previous QuestionNext Question
What is Hypothecation?What is Lien?