Question

Select the correct statements related to types of credit loan.
A. Chattle Loans: Loans obtained from Pownbrokers
B. Mortgage: Movable property that is pleadged to secure a loan
C. Collateral Security: Transfer of interest in a specific immovable property
D. Secured loans: Loan advanced without security by borrower
E. Personal Security: Borrower himself stands as the gurantor.

• A. A, E only
• B. A, D, E only
• C. A, B only
• D. A, B, C only

Hint:

To distinguish: Mortgage is for land/buildings (immovable), while Pledge/Chattel is for equipment/livestock (movable).

Answer 1

The Correct Option is A

Concept: Agricultural credit involves different legal instruments and types of security to mitigate the lender's risk.

Step 1: Evaluate statements A and E.
Chattle (or chattel) loans are often associated with movable property and can be obtained through pawnbrokers or similar entities[cite: 6492]. Personal security involves the borrower acting as their own guarantor based on character and creditworthiness[cite: 6499]. Both A and E are correct.

Step 2: Identify errors in B, C, and D.
* B (Mortgage): This involves immovable property (like land), not movable property[cite: 6493]. * C (Collateral): This is a broad term for assets pledged; the specific "transfer of interest in immovable property" is actually the definition of a mortgage[cite: 6495]. * D (Secured loans): These are loans backed by an asset; loans without security are called unsecured loans[cite: 6497].

Step 3: Conclusion.
Only A and E are correctly described.