About this Program
The Punjab government’s innovative interest-free loan scheme is designed to empower small entrepreneurs by providing a digital solution for accessing credit. This initiative offers loans of up to PKR 1 million through a digital SME card, enabling small businesses to grow and thrive. This scheme leverages digital channels like mobile applications and point-of-sale (POS) systems to ensure structured and transparent utilization of funds. A significant highlight of this initiative is the introduction of the “CM Punjab Asaan Karobar Card,” which streamlines access to financial assistance. By simplifying the loan application process and ensuring transparent disbursement, the card serves as a powerful tool to foster economic growth and self-reliance among budding entrepreneurs.
Asaan Karobar Card: Key Features
- Maximum Loan Limit: PKR 1 million.
- Loan Tenure: Three years.
- Loan Type: A revolving credit facility available for 12 months.
- Repayment Term: 24 equal monthly installments after the first year.
- Grace Period: Borrowers enjoy a three-month grace period from the card issuance date before repayment begins.
- Permitted Usage:
- Payments to vendors and suppliers.
- Utility bills, government fees, and taxes.
- Cash withdrawals for miscellaneous business needs (limited to 25% of the loan limit).
- Digital transactions via POS and mobile apps.
- End-User Interest Rate: 0%.
Eligibility Criteria: Asaan Karobar Card
To qualify for the scheme, applicants must meet the following requirements:
- Be a small entrepreneur (SE) based in Punjab.
- Age between 21 and 57 years.
- Hold Pakistani nationality and reside in Punjab.
- Possess a valid CNIC and a registered mobile number.
- Operate an existing or prospective business in Punjab.
- Demonstrate a satisfactory credit and psychometric profile.
- Maintain a clean credit history with no overdue loans.
- Submit only one application per individual or business.
Asaan Karobar Card: How to Apply
The application process is entirely digital, ensuring accessibility and efficiency:
- Submit applications through the PITB portal.
- Pay a non-refundable processing fee of PKR 500.
- Undergo digital verification of CNIC, creditworthiness, and business premises by authorized agencies.
Loan Usage and Repayment Details
- Initial 50% Limit: Available for use within the first six months.
- Grace Period: Repayments begin three months after card issuance.
- Minimum Monthly Payment: Borrowers must pay at least 5% of the outstanding loan balance (principal only) each month after the grace period.
- Second 50% Limit: Released upon demonstrating satisfactory usage, regular repayments, and registration with the Punjab Revenue Authority (PRA) or Federal Board of Revenue (FBR).
- Restrictions: Funds are strictly allocated for business-related purposes, with non-essential transactions (e.g., personal expenses or entertainment) blocked.
- Repayment Term: After the first year, the remaining balance is repaid over two years in equal monthly installments (EMIs).
Charges and Fees
- Annual Card Fee: PKR 25,000 + FED, deducted from the approved loan limit.
- Additional Charges: Life assurance, card issuance, and delivery charges are covered by the scheme.
- Late Payment Charges: Applicable as per the bank’s policy and schedule of charges.
Security Details
- Borrowers must provide a personal guarantee digitally signed through the application process.
- Life assurance is included within the loan portfolio.
- The Urban Unit conducts physical verification of business premises within six months of loan approval and annually thereafter.
Key Conditions
- We strictly allocate funds for core business activities and block non-business-related transactions.
- Registration with the PRA/FBR is mandatory within six months of card issuance.
- Each individual or business may submit only one application.
Additional Support for Applicants
To further facilitate small entrepreneurs, the scheme offers feasibility studies for startups and new businesses. These resources are available on the PSIC and BOP websites.
Helpline and More Information
For assistance, applicants can contact the helpline at 1786. For detailed information and updates about the program, visit the official website: https://akc.punjab.gov.pk/cmpunjabfinance.
This revolutionary program is a vital step toward fostering economic growth and entrepreneurship in Punjab. By providing a transparent and accessible financing option, the government empowers small entrepreneurs to achieve financial sustainability and contribute to the province’s prosperity.
