Lien
What Lien means
A lender's legal right to retain or claim a borrower's specific asset until the associated debt is fully repaid, preventing the asset from being transferred or encumbered.
Example
If you pledge your FD as collateral, the bank places a lien; you cannot prematurely break the FD until the lien is lifted after full loan repayment.
This definition is based on Transfer of Property Act, 1882 ↗. We link every figure to its primary source — see our data methodology.
Related legal & security terms
- Charge on PropertyA formal encumbrance registered with the sub-registrar or Registrar of Companies indicating that a lender holds a financial interest in the property as security for a loan.
- HypothecationA charge on a movable asset (vehicle, machinery) offered as loan security, where the borrower retains physical possession and use of the asset. The lender can seize it only on default.
- MortgageA charge on immovable property (land or building) created in favour of a lender as security for a loan, giving the lender the legal right to sell the property on default.
- PledgeA security arrangement where the borrower physically delivers a movable asset (gold, shares, NSC, FD) to the lender; ownership stays with the borrower but possession is with the lender.