The provincial government of Punjab has launched an ambitious initiative aimed at supporting small and medium enterprises (SMEs) across various sectors through zero-interest loans. This new program, part of the Asaan Karobar Scheme, seeks to empower entrepreneurs by offering financial assistance to help them start or grow their businesses, modernize operations, and even invest in eco-friendly projects.
Loan Tiers and Features
The Asaan Karobar Scheme offers two distinct tiers of loans, each designed to cater to different business needs:
- Tier 1: Loans ranging from Rs. 1 million to Rs. 5 million. This tier requires a personal guarantee, offers a maximum term of five years, and charges no interest. A processing fee of Rs. 5,000 applies.
- Tier 2: Loans ranging from Rs. 6 million to Rs. 30 million. For this tier, applicants must provide secured collateral. The repayment terms and interest rates remain the same as Tier 1, though the processing fee increases to Rs. 10,000.
In both tiers, repayments are to be made in equal monthly installments. A late fee of PKR 1 per PKR 1,000 will be charged for overdue amounts.
Step-by-Step Application Process
To apply for a loan under the Asaan Karobar Scheme, entrepreneurs must prepare the following documents:
- Passport-sized photo and CNIC (Computerized National Identity Card)
- CNIC and contact details of two non-relative references
- Proof of active tax filer status
- Business income and expense records
- Property-related documents such as rental agreements or transfer letters
- Collateral documentation (for Tier 2)
- Application fee payment
Applicants can begin the process by creating an account online and completing a short form, which takes approximately 15 minutes. After submitting the form, documents must be uploaded, and the corresponding non-refundable fee of Rs. 5,000 or Rs. 10,000 (based on the loan tier) must be paid.
Once submitted, applicants will receive a registration number, and updates regarding their application status will be sent via SMS. The online platform also allows applicants to track their application status. If the loan is approved, the applicant will receive a notification.
This interest-free loan program aims to bolster Punjab’s entrepreneurial ecosystem, creating a more favorable environment for SMEs to thrive and contribute to the province’s economic growth.
