Types of mortgage (Section 58 of Transfer of property act):

a) Equitable mortgage: under section 58F of Transfer of property act.

Allowed in Mumbai, Kolkata, Madras or any notified towns. The towns
are notified in state gazette. Method of creation is deposit of title
deeds. Witness and registration is not required. Possession and
ownership is not transferred. Right to redemption is available to
mortgagor. Limitation is 12 years.
b) Simple mortgage: Under section 58B of Transfer of property act.
Allowed in all over India. Method of creation is writing of Mortgage
deed. Two witness and registration is required. Possession and
ownership is not transferred. Right to redemption is available to
mortgagor. Limitation is 12 years.
c) Mortgage with conditional sale: Under section 58C of Transfer of
property act. Allowed in all over India. Possession and ownership is
not transferred but conditional sale to be re-transferred if debt is paid
back. Method of creation is writing of Mortgage deed. Two witness and
registration is required. Limitation is 12 years.
d) English mortgage: Under section 58E of Transfer of property act.
Method of creation is writing of Mortgage deed. Allowed in Mumbai,
Kolkata, Madras or any notified towns. The towns are notified in state
gazette Two witness and registration is required. The title is
transferable but not the possession. Limitation is 12 years.

Different types of charges:

Type of Type of security Example of security
charges
Mortgage Immovable securities Land, building, machinery
embedded in to the earth.
Pledge Movable assets Raw material, shares &
Stocks, gold, jewellery.
Hypothecation Movable assets Raw material, motor vehicles,
standing crops.
Lien Securities which are already Goods and securities except
in possession of the creditor. actionable claims and money.
Assignment Actionable claims LIC policies, book-debts,
FDRs.