Patent Filing Cost: The cost of filing and prosecution of patent application will be reimbursed to the

incubated startup companies subject to a limit of Rs. 2 lakh (0.2 million) per Indian patent awarded.
For awarded foreign patents on a single subject matter, upto Rs. 10 lakh (1 Million) would be
reimbursed. The reimbursement will be done in 2 stages, i.e., 75% after the patent is filed and the
balance 25% after the patent is granted
Basically the Atmanirbhar scheme provides three major ways of infusion –

1. Collateral free automatic loan for SMEs up to 3 lakh crore which means
not a single MSME unit needs to pay any collateral or guarantee for the
loans availed under this scheme. They will also not be required to pay any
principal component of the loan for the first year. The tenure of the loan
will be for 4 years. This will benefit 45 lakh units resume business
activities and safeguard jobs, said the FM.

2. Rs 20,000 crore subordinated debt for stressed MSMEs facing an equity

problem. It will help functioning MSMEs which are either NPA (non
performing assets) or are economically stressed. Around Rs 2 lakh
MSMEs qualify under this category. The government will provide Rs
4,000 crore partial credit guarantee support to banks and promoters of the
MSMEs will be given debt by banks in the form of equity infusion.

3. Fund of fund for the infusion of Rs 50,000 crore as equity into MSMEs.
This will benefit MSMEs with potential and viability by providing them
greater support in capacity expansion and for the purpose of market-
listing. This will cover MSMEs that are performing very well and can use
the opportunity to expand.
Key Takeaways of New MSME Definition introduced in ‘Atmanirbhar Bharat Abhiyan‘
or Self-reliant India Scheme 2020 by Government of India.

 Collateral Free Loans to MSMEs

 MSME Loans worth of Rs. 3 lakh crore
 Moratorium period offered is 12 months
 Manufacturing and Service MSMEs shall be considered as same entities
 Repayment Tenure of 48 months
 100% Credit Guarantee
 To benefit approx. 45 lakh units

MSME Loans from Popular Banks and NBFCs

Apart from the government-backed schemes, there are a number of private sector banks
as well that offer MSME loan at competitive interest rates. Below mentioned are some
key banks and NBFCs that offer MSME loans with added benefits:

MSME Loans from Lendingkart Finance 2020

Interest Rate 18% onwards

Max. Loan Amount Up to 2 cr

Min. Loan Amount Rs. 50,000

Processing Fee Up to 2% of the loan amount

Repayment Tenure Up to 36 months

Loan Sanctioning Time Within 3 working days

Collateral / Security Not required

Pre-payment Charges Nil

Note: The mentioned interest rates, fees and charges are subject to change and
depend on the sole discretion of the bank and RBI. GST and service tax shall be
levied extra on the mentioned charges
*Based on the health of your business, revenues and annual turnov

MUDRA Loan from SBI 2020

Interest Rate 10.15% onwards

Max. up to 20 crore, can exceed as per

Loan Amount
requirements

Processing Fee Upto 2% of the loan amount

Business Existence Min. 5 years in same locality/area

Bank Account History Current account holder for at least 2 years

Repayment Period Up to 120 months

Note: The mentioned interest rates, fees and charges are subject to change and
depend on the sole discretion of the bank and RBI. GST and service tax shall be
levied extra on the mentioned charges
*Based on the health of your business, revenues and annual turnover
Business Loans from HDFC Bank 2020

Rack Interest Rate 15% onwards*

Loan amount Up to Rs. 50 lakh

Up to 2.50% of the loan amount, Min. of Rs. 2359 &

Processing Fee
Max. of Rs. 88500

Overdue EMI Interest 2% per month on EMI / Principal Overdue

Pre-payment Charges Nil, until repayment of 6 EMIs

Collateral / Security Not required

Note: The mentioned interest rates, fees and charges are subject to change and
depend on the sole discretion of the bank and RBI. GST and service tax shall be
levied extra on the mentioned charges
*Based on the health of your business, revenues and annual turnover
MSME Loans – ICICI Bank – 2020

Interest Rate 15% onwards

Public Limited Companies, Partnership Firms, Sole

Loan offered to
Proprietorship Firms, Private Limited Companies

Loan Amount Up to 2 crore

Cash Credit Feature Available

Collateral / Security Not required

Eligible Business Segment Micro Small Enterprise, excluding traders

Note: The mentioned interest rates, fees and charges are subject to change and
depend on the sole discretion of the bank and RBI. GST and service tax shall be
levied extra on the mentioned charges
*Based on the health of your business, revenues and annual turnover
MSME Loans from Bajaj Finserv 2020

Interest Rate 18% onwards

Processing Fee Up to 3% of the loan amount

Loan Tenor Max. up to 60 months

Loan Amount Max. up to Rs. 30 lakh

Loan Sanctioning Time Within 24 hours

Collateral / Security Not required

Note: The mentioned interest rates, fees and charges are subject to change and
depend on the sole discretion of the bank and RBI. GST and service tax shall be
levied extra on the mentioned charges
*Based on the health of your business, revenues and annual turnover
As per the Micro, Small, and Medium Enterprises (MSME) Development Act 2006, these
businesses are classified in two categories, service enterprises and manufacturing
enterprises.

MSME Loan Schemes

MSME loans are offered to Micro, Small and Medium Enterprises (MSMEs) by financial
institutions that include banks and NBFCs. MSME loans are also offered by government
with the help of various schemes which are further discussed. Government Schemes
that come under MSME loans include Mudra Loan, CGTMSE, PMEGP, etc. These
schemes ensure that the new and existing entrepreneurs in the country get the
necessary financial support and funding for their businesses.

MUDRA Loan
MUDRA (Micro Unit Development and Refinance Agency) was introduced to provide
support to the small business owners. MUDRA yojana is further classified between three
categories named as Shishu, Kishore and Tarun.

In the Shishu category, an MSME loan is provided up to Rs. 50,000 to a Start-Up

enterprise. In the Kishore category, a loan of up to Rs. 5 lakh is provided to the
companies that have been running for a while and want to get more established. In the
Tarun category, the MSME loan is provided up to Rs. 10 lakh to companies that are
established and are looking for expansion. The maximum repayment tenure is of 60
months for all Mudra loan categories.

CGTMSE (Credit Guarantee Funds Trust for Micro

and Small Enterprises)
CGTMSE (Credit Guarantee Funds Trust for Micro and Small Enterprises) was
introduced to establish a strong credit relief system and promote a better credit flow for
the MSME sector. Under the CGTMSE scheme, the loan is backed without any external
collateral or third party guarantee.
Here, the MSME loan sanctioned by the Member Lending Institution (MLI) is backed by
the scheme which provides the guarantee cover for a large portion of the loan amount.
Under CGTMSE scheme, both new and existing medium, small, and micro enterprises,
including service enterprises are eligible for a maximum credit cap of Rs. 2 crore.
CGTMSE also offers rehabilitation assistance to the units. Any MSME unit that is in a
bad condition due to the factors beyond the control of management is supported by the
CGTMSE rehabilitation assistance. The maximum credit cap of Rs. 1 crore is offered
to the dilapidated MSME units.
Also Read: Small Scale Industries (SSI) – Registration Process, Features, Benefits
Eligibility of CGTMSE Scheme
CGTMSE scheme is offered to various institutions which are as follows:

 Scheduled Commercial Banks

 Regional Rural Banks (RRBs)
 National Small Industries Corporation (NSIC)
 North Eastern Development Finance Corporation (NEDFi)
 Small Industries Development Bank of India (SIDBI)

CGTMSE scheme aids all new and existing medium, small, and micro enterprise
borrowers who fulfil the conditions mentioned below:

 The trust guarantees up to 75% of the defaulted principal amount for all
categories and up to 85% of the defaulted principal amount for selected category
of borrowers. The maximum guarantee cap is kept at Rs. 62.50 lakh / Rs. 65 lakh
for the credit facilities up to Rs. 50 lakh

 Associated charges such as penal interest, commitment charge, and service

charge including any other levy / expenses are not covered by the scheme

MSMEs to receive rebates of up to 80% on patent fees and have also received legal
assistance for the same, under FFS of SIDBI.
 IPR registrations

- NRDC - http://www.nrdcindia.com/PatentApplication

- ZED Scheme - Application Form

Application Form: http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx

High Risk -High Reward Research

- Science and Engineering Research Board (SERB) under Department of Science & Technology

http://www.ipindia.nic.in/SIPP.htm

Sr. Name of Eligibility Benefits Requirements/

No. Scheme Application
1. The SIPP DPIIT Regn. - Fast-tracking of You should reach out
(Startups Startup Patent
Intellectual
startups covered to an appropriate
Applications: Patent
Property under this scheme applications filed by Facilitator - depending
Protection) startups shall be fast- on your desired sector
(SIPP) will not be required tracked for
scheme, examination so that and the jurisdiction of
to obtain certificate
under DPIIT their value can be the facilitators -  for up-
of an eligible realised sooner.
to-date information
business from the - Panel of facilitators
to assist in filing of about the process and
Inter-Ministerial IP applications: For required documents for
effective
Board of a patent or trademark
implementation of the
Certification. scheme, a panel of application.
“facilitators” shall be Click here for a list
“However, startups empanelled by the
of Trademark
will be required to Controller General of
Patents, Designs and Facilitators and Patent
give a Trademarks Facilitators.
(CGPDTM), who shall
self-declaration that
also regulate their
they have not conduct and functions.
Facilitators will be
availed funds under responsible for
any other providing general
advisory on different
government scheme intellectually property
for the purpose of as well as information
on protecting and
paying the promoting intellectual
property in other
facilitator/patent countries.
agent/trademark - Government to
bear facilitation
agent for filing and cost: Under this
prosecuting their IP scheme, the Central
Government shall bear
application,”. The the entire fees of the
facilitators shall be
facilitators for any
number of patents,
empanelled by the trademarks or designs
that a Startup may file,
Controller General of and the Startups shall
Patent, Trademark bear the cost of only
the statutory fees
and Design payable.
(CGPDTM). - Rebate on filing of
application: Startups
shall be provided an
80% rebate in filing of
patents vis-a-vis other
 companies. The
facilitators will help the
startup applicants in
information and
assistance related to
filing patent and
trademark related
applications, filing
responses to
examination reports
from the IP office,
appearing on behalf of
startup at hearings etc.
The cost of the
statutory fees payable
for each patent,
trademark or design
applied for by a startup
after launch of this
scheme shall be borne
by the startup. To
obtain tax related
benefits, a startup shall
be required to be
certified as an eligible
business from this
board.
2. Karnataka The policy defines that the
Start-up
 – The applicant cost of filing and prosecution  The eligible
Policy should be a of patent application will be startups will submit
2015- reimbursed to the incubated
2020 Startup startup companies subject to the application in
a limit of Rs. 2 lakh (0.2
registered with million) per Indian patent the prescribed
the Karnataka awarded. For awarded format along with
foreign patents on a single
Startup Cell subject matter, up to Rs. 10 the documents
lakh (1 Million) would be
with a valid reimbursed. The mentioned in the
Karnataka reimbursement will be done format to the
in 2 stages, i.e., 75% after
Startup Cell the patent is filed and the Karnataka Startup
balance 25% after the patent
registration is granted.  Cell as follows:
number. Application for
reimbursement Post
Additionally,
Filing of Patent:
the startup Applicant should have
should be filed for the patent for
which reimbursement
incubated,
is being claimed. The
 physically or Applicant may claim
reimbursement
virtually.
towards fees paid to
 – Only patents the concerned
that have been authority and legal
charges, if any
filed by a
(drafting/consultation).
startup within The reimbursement
validity of this shall be made on a
Policy (from the one-time basis and
shall be availed only
date of publish
once for the particular
of GO) will be patent application.
eligible to claim Applicant to
this mandatorily fill and
submit relevant
reimbursement.
documents along with
 – Patents that Annexure I – Form A
are created for and B in the
prescribed format.
a technology
Application for
based service reimbursement Post
or product or Grant of Patent:
uses Applicant should have
already been granted
technology for
the patent for which
enhancing reimbursement is
functionality or claimed and should
reach of an have already claimed
reimbursement of
existing
costs incurred post
product or filing of the patent
service are under clause
13.1.5(1). Applicant
eligible.
may claim
 – The applicant reimbursement
should have towards fees paid to
already filed or the concerned
authority and legal
been granted a
charges, if any
patent with the (drafting/consultation).
concerned Applicant to
authority. The mandatorily fill and
submit relevant
applicant
documents along with
should have Annexure I – Form A
paid the and B in the
prescribed format.
mandatory
Applicant shall not be
Government entitled to
fees/attorney reimbursement under
fees in this this provision in case
Applicant has
regard.
received
reimbursement of Rs.
2 Lakhs for a
domestic patent filing
and/or Rs. 10 Lakh for
foreign patent filing
Application for
reimbursement Post
Filing and Post
Grant of Patent
simultaneously:
Applicant should have
been granted the
patent for which
reimbursement is
being claimed and
should not have
claimed
reimbursement for the
same previously.
Applicant may claim
reimbursement
towards fees paid to
the concerned
authority and legal
charges, if any
(drafting/consultation).
Applicant to
mandatorily fill and
submit relevant
documents along with
 Annexure I – Form A,
B and C in the
prescribed format.
Applicant shall be
eligible to
reimbursement up to
Rs. 2 Lakh for an
Indian Patent and up
to Rs. 10 Lakh for a
foreign Patent.
  A copy of the
patent filed at the
appropriate
authority.
 5. Certificate of
Patent Grant from
Patent Office as
applicable.
 6. Detailed
statement of
expenses incurred
towards the Patent
Registration along
with the copies of
invoices & receipts
from the patent
authority and legal
counsel as
applicable.
 7. All Invoices
submitted by the
appropriate Patent
Authority towards
Govt. fees and
towards legal
 agents.
 8. The certificate of
Patent with valid
serial number must
be furnished and
valid form 27 to be
enclosed.
On receipt of all
necessary
documents, KITS will
duly analyze the
application for
eligibility. Post review
& assessment of the
Application, KITS will
arrive at the quantum
of reimbursement due
and payable. The
Managing Director,
KBITS will finally
sanction the eligible
amount for
reimbursement and
the decision shall be
deemed final in this
regard.
Reimbursement
amount will be
released / disbursed
on the seniority basis
depending upon the
Budget allotment of
the State
Government.
3. - - -
-
 Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including
MSMEs
 Businesses/MSMEs have been badly hit due to COVID19 need additional funding to meet
operational liabilities built up, buy raw material and restart business
 Decision: Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to
20% of entire outstanding credit as on 29.2.2020
o Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible
o Loans to have 4 year tenor with moratorium of 12 months on Principal repayment
o Interest to be capped
o 100% credit guarantee cover to Banks and NBFCs on principal and interest
o Scheme can be availed till 31st Oct 2020
o No guarantee fee, no fresh collateral

Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds

 MSMEs face severe shortage of Equity.
 Fund of Funds with Corpus of Rs 10,000 crores will be set up.
 Will provide equity funding for MSMEs with growth potential and viability.
 FoF will be operated through a Mother Fund and few daughter funds
 Fund structure will help leverage Rs 50,000 cr of funds at daughter funds level
 Will help to expand MSME size as well as capacity.
 Will encourage MSMEs to get listed on main board of Stock Exchanges.

NBFCs, HFCs and MFIs with low credit rating require liquidity to do fresh lending to MSMEs
and individuals
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) by Government of India and
SIDBI 

A - Member Lending Institutions - Eligibility, responsibility etc.

1.        Which are considered as eligible lending institutions under the Scheme?

All Scheduled Commercial Banks (either PSU, Private or Foreign Banks), selected Regional Rural
Banks, selected state financial corporations , NBFCs, Small Finance Banks (SFBs) or such of those
institutions as may be directed by GOI can avail of guarantee cover in respect of their eligible credit
facilities under the Scheme. Small Industries Development Bank of India (SIDBI), National Small
Industries Corporation Ltd. (NSIC) and North Eastern Development Finance Corporation Ltd. (NEDFi)
have been included as eligible institutions. 

B - Eligible Borrowers

1.       Which type of borrowers can be covered under the Scheme?

New and existing Micro and Small Enterprises engaged in manufacturing or service activity
excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training
Institutions etc.

2.       Whether Borrowers from all service sector enterprises are eligible under the
Scheme?

As of now, all activities that come under service sector as per MSMED Act, 2006 are eligible
for coverage under the scheme.

3.      Whether loans given to Small Road Transport Operators are eligible for coverage
under the Scheme?

Yes. Small road and water transport loans are eligible for guarantee cover.

4.      Is it compulsory for the borrower to obtain Income Tax Permanent Account Number
[IT-PAN] to be an eligible borrower?

Under the Guarantee Scheme, a borrower is required to obtain IT PAN number prior to
availing of credit facility from the eligible lending institution. Also it is a mandatory
requirement under section 139A(5) read with section 272(C) of the I.T Act 1961 to indicate
IT PAN on all tax documents which include returns, challans, appeals, etc. However, in
respect of loans up to  5 lakh, CGTMSE is presently not insisting that the IT PAN be obtained
at the time of availing of the guarantee cover. IT Pan No. is to be indicated in respect of
credit facility above  5 lakh. Nevertheless, the MLIs have been advised to inform their
borrowers to apply for IT PAN number. It is desirable to indicate IT Pan No. in all the
application irrespective of the amount. (Refer Circular no. 112).It is advisable to obtain
Udyog Aadhaar Number of every borrower and feed it in the system at the time of
submission of new application .

5.       Is guarantee benefit available to existing units of a lending institution which has
become a MLI of CGTMSE?

In case of existing units, additional credit facilities in the form of term loan or renewal of
working capital facilities can be covered as and when the facilities are extended, provided
no collateral security and/ or third party guarantee is obtained.Under the "Hybrid Security"
product, the MLIs will be allowed to obtain collateral security for a part of the credit
facility, whereas the remaining part of the credit facility, up to a maximum of  200 lakh, can
be covered under Credit Guarantee Scheme of CGTMSE. CGTMSE will, however, have pari-
passu charge on the primary security as well as on the collateral security provided by the
borrower for the credit facility.

6.        Is it necessary that a borrower to be eligible should obtain all the required credit
facilities from a single institution?

Credit facilities can be extended by more than one bank and/or financial institution jointly
and/or separately to eligible borrower up to a maximum limit of  200 lakh per borrower
subject to ceiling amount of individual MLI or such amount as may be specified by the
Trust. However, sharing of securities will not be permitted.

7.       Co-financing to a MSE unit by Financial Institution with a Commercial Bank can be

covered under the Scheme?

Yes, joint financing by a financial institution (e.g. SIDBI, NSIC, and NEDFi) and Commercial
bank can be covered under the scheme. For e.g. MSE unit is financed by term loan from
State financial institution and Working capital from a commercial bank. However, sharing
of securities will not be permitted.

8.       Whether credit facility extended to self-help group can be covered under the
scheme?

No. At present, as per the Scheme, the credit facility extended to Self Help Group cannot
be covered.

List of MLIs –

https://www.cgtmse.in/List_Of_MLIs.aspx
 Earlier this week, DC-MSME approved revised guidelines on Intellectual Property Rights (IPR) for
supporting of MSMEs by means of hand holding cum financial supports though its field organization.

As per the guidelines, for reimbursement of actual costs or expenses incurred towards registration of
Patents or Trademarks, from the Office of Development Commissioner (MSME), Ministry of MSME,
Government of India, the applicant/entity/unit must have a valid Udyog Aadhar/UAM and registered at
MSME- Data bank. Patents/Trademarks filled/registered in the name of individuals are also eligible for
reimbursement subject to holding a valid Udyog Aadhar/UAM.

Applicants can apply for reimbursements through online portal of MSME i.e. MY.MSME.GOV.IN by
furnishing all the relevant details and uploading the necessary supporting documents, according to the
guidelines.

.Credit Linked Capital Subsidy Scheme:

Under this scheme, new technology is provided to the business owners to replace
their old and obsolete tech-nology. A capital subsidy is given to the business to
upgrade and have better means to do their business. The small, micro and medium
enterprises can directly approach the banks for these subsidies.
Incubation:
This scheme helps innovators with the implementation of their new design, ideas or
products. Under this from 75% to 80% of the project cost can be financed by the
government. This scheme promotes new ideas, designs, products etc.
New Benefits under “Atmanirbhar Bharat Scheme”
-Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to
20% of entire outstanding credit ason 29.2.2020
 Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible
 Loans to have 4 year tenor with moratorium of 12 months on Principal repayment
 Interest to be capped
 100% credit guarantee cover to Banks and NBFCs on principal and interest
 Scheme can be availed till 31st Oct 2020
 No guarantee fee, no fresh collateral

-Rs 20,000 crores Subordinate Debt for Functioning MSMEs which are NPA or
are stressed
-Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds
-Global tenders will be disallowed in Government procurement tenders upto Rs
200 crores

SIDBI MAKE IN INDIA SOFT LOAN FUND FOR MICRO

SMALL AND MEDIUM ENTERPRISES (SMILE)

SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises[SMILE]

 Competitive interest rates

 Funding of part Promoter contribution by way of soft loans
  Longer repayment period
 Quick dispensation

 To provide soft loan, in the nature of quasi-equity, and term loan on relatively soft
terms to MSMEs for establishment of new unit or for growth of existing MSMEs
 Focus on identified 25 Make in India sectors. In addition, deserving proposals from
any other sector can also be assisted on merits
 Attractive Interest Rates starting from 8.36%* onwards(subject to change)
 Loans extended under the scheme cannot be used for repayment of earlier loans
Eligibility Criteria

 Emphasis will be on covering new enterprises in the manufacturing as well as

services sector. The emphasis will however, be on financingsmaller enterprises
within MSME
 Existing enterprises undertaking expansion, to take advantage of new emerging
opportunities, as also undertaking modernization, technology upgradation or other
projects for growing their business will also be covered
 Quantum of assistance:Minimum Loan Size - ₹ 25 lakh
 Tenure and moratoriumLonger repayment period upto 10 years and moratorium of
upto 18 months
 Minimum Promoter Contribution of 15% subject to Maximum DER of 3:1
Security Term Loan

 First charge over all assets created under the project

 Personal guarantee of promoter(s)
 Cases involving term loan up to `2 crore may be covered under Credit Guarantee
Scheme of CGTMSE
ACR and FACR norms would be applicable in terms of extant Loan Policy Soft Loan

 Residual charge over the entire assets

 Personal Guarantee of the Promoter(s)