What context can I use each word in?
Learn when and how to use these words with these examples!
hypothecation
Example
The bank required hypothecation of the property before approving the loan. [hypothecation: noun]
Example
The borrower hypothecated his car to secure the loan. [hypothecated: verb]
pledge
Example
I pledge to always be there for you. [pledge: verb]
Example
The company offered their stocks as a pledge for the loan. [pledge: noun]
Example
He made a pledge to donate $1000 to the charity. [pledge: noun]
Good things to know
Which word is more common?
Pledge is a more common word than hypothecation and is used in various contexts beyond finance and law.
What’s the difference in the tone of formality between hypothecation and pledge?
Hypothecation is a technical term used mainly in formal and legal contexts, while pledge can be used in both formal and informal situations.
