• Ankit Patel
• Dr. Niti Nipuna Saxena

In the modern economy, intellectual property rights (IPR) such as patents, trademarks, copyrights and designs have become valuable business assets. However, Indian banks still mainly accept physical assets like land, buildings and machinery as collateral for loans. This research paper studies the possibility of using intellectual property rights as collateral in banking transactions in India. It explains the concept of IP-backed financing, the existing legal framework, and the role of policies like the National IPR Policy, 2016 and the SARFAESI Act, 2002. The paper also highlights the major challenges such as difficulty in valuation of IP, lack of a clear enforcement mechanism, legal uncertainties, and limited awareness among banks. Although the idea of using IPR as collateral has great potential, especially for startups and innovation-based industries, its practical application in India remains limited. The paper concludes that with proper valuation systems, legal clarity, institutional support, and awareness among financial institutions, intellectual property can become a strong alternative form of collateral and can help promote innovation, entrepreneurship, and economic growth in India.

"INTELLECTUAL PROPERTY RIGHTS AS COLLATERAL IN BANKING TRANSACTION IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 1, page no.e309-e311, January-2026, Available :http://www.jetir.org/papers/JETIR2601446.pdf

"INTELLECTUAL PROPERTY RIGHTS AS COLLATERAL IN BANKING TRANSACTION IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 1, page no. ppe309-e311, January-2026, Available at : http://www.jetir.org/papers/JETIR2601446.pdf