Punjab's Asaan Karobar Finance scheme: How to apply

The Punjab government has launched a new initiative to provide interest-free loans to support Small and Medium Enterprises (SMEs).

This program is designed to address a range of business needs, including startups, business expansion, modernization, working capital, commercial logistics, and climate-friendly ventures.

The loan program is divided into two tiers. Tier 1 offers loans ranging from Rs1 million to Rs5 million, requires a personal guarantee, and has a tenure of up to five years. The interest rate is 0%, and there is a processing fee of Rs5,000.

Tier 2 provides loans between Rs6 million and Rs30 million, requires secured collateral, and has the same tenure, interest rate, and a processing fee of Rs10,000.

Repayment for both tiers will be in equal monthly installments as per the approved terms. A late charge of PKR 1 per PKR 1,000 per day will be imposed on overdue amounts.

To apply for the loan, applicants must have scanned copies or clear images of several documents, including passport-size pictures, CNIC, mobile number associated with CNIC, proof of active tax filing, business income and expenses details, and either a Rent Agreement, Transfer Letter, or Registry related to the business and residence addresses.

Collateral, such as a Property Transfer Letter or Government Securities, will also be required for Tier 2.

The application process involves creating an account, ensuring a mobile number is registered in the applicant’s name, and allocating at least 15 minutes to complete the application. The application fee for Tier 1 is Rs5,000 and for Tier 2 is Rs10,000, both of which are non-refundable.

After submission, applicants will receive a registration number and will be updated via SMS regarding their application status. The status can also be checked on the official website.