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What is pledge? - Commerce

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प्रश्न

What is pledge?

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उत्तर

A customer transfers the possession of an article with the creditor (banker) and receives a loan. Till the repayment of the loan, the article is under the custody of the borrower. If the debtor fails to refund the loan, the creditor (banker) will auction the article pawned and adjust the outstanding loan from the sale proceeds. 

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पाठ 19: Sources of Business Finance - Exercises [पृष्ठ २०१]

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सामाचीर कलवी Commerce [English] Class 11 TN Board
पाठ 19 Sources of Business Finance
Exercises | Q III. 2. | पृष्ठ २०१
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