Punjab Asaan Karobar Scheme: Check eligibility, registration & other details here

LAHORE: Chief Minister of Punjab Maryam Nawaz has launched the ‘Asaan Karobar’ programme, which aims to provide interest-free loans to traders and small and medium enterprises (SMEs) across the province.

The programme seeks to promote economic growth by facilitating start-ups and existing businesses with accessible financing.

Addressing the launching ceremony in Lahore, Chief Minister Maryam Nawaz said that this programme is the first of its kind in the history of Punjab in which interest-free loans ranging from Rs 1 million to Rs 30 million have been offered to promote business activities.

She further announced that land will also be provided at highly concessional rates to support new businesses.

Loan details & repayment terms

The ‘Asaan Karobaar Finance Scheme’ offers two tiers of interest-free loans:

• Tier 1: Loans from Rs1 million to Rs5 million with a processing fee of Rs5,000.
• Tier 2: Loans from Rs6 million to Rs30 million with a processing fee of Rs10,000.

Both tiers offer a 0% interest rate with a repayment tenure of up to five years. Startups and new businesses will receive a grace period of six months, while existing businesses will be granted a three-month grace period. Repayments will be made in equal monthly instalments, with a late charge of Rs1 per Rs1,000 per day on overdue payments.

The loans will be disbursed through the Bank of Punjab, and there is no immediate requirement for an NOC, licence, or prior approval to obtain financing. “Get a loan today and start your business tomorrow,” the chief minister said, emphasising the ease of access to funds.

Interest-free loans for entrepreneurs

During the event, the chief minister distributed ‘Asaan Karobar Finance’ cheques and business cards to selected entrepreneurs. Beneficiaries included Faisalabad’s Asif, who received Rs30 million for a pharmaceutical business, and Rawalpindi’s Wajahat Fareed, who secured Rs30 million for a software house. Similarly, Lahore’s Arshad was granted Rs30 million for a sports export business.

Other recipients included Sahiwal’s Ali Asif, who obtained Rs5 million for a furniture business, and Afzal, who was granted Rs3.175 million for a transport business. Lahore’s Shabbir received Rs5 million for a hair salon and cosmetics venture.

Additionally, Faizan Mumtaz secured an Asaan Business Card worth Rs5.75 million for a garments business, while Abu Bakar Saleh and Chaudhry Zulfiqar Ali received Rs1 million each for paper manufacturing and a bakery business, respectively.

Required documents for Scheme

Before applying, applicants should have scanned copies or clear images of:

• CNIC and a passport-size photo.
• Proof of tax filing.
• Business income and expense details.
• Rent agreement or property documents for business and residence.
• References’ CNIC copies and contact details.

Here’s how to apply for Asaan Karobar Scheme

1. Create an account: Register through the Punjab Information Technology Board (PITB) portal using your CNIC-linked mobile number.
2. Fill the application: Allocate at least 15 minutes to complete the form.
3. Pay the fee: Submit a non-refundable processing fee of Rs5,000 for Tier 1 or Rs10,000 for Tier 2.
4. Submit the application: Upload the required documents and submit the form.
5. Track status: Receive a registration number and SMS updates regarding your application status.

Eligibility criteria

Applicants must meet the following requirements:

• Be aged between 21 and 57 years.
• Have a valid CNIC and registered mobile number.
• Own or plan a business located in Punjab.
• Be a tax filer with a clean credit history.
• Provide references and documentation related to business and residence.

Additionally, small businesses with annual sales of up to Rs150 million and medium-sized businesses with annual sales between Rs150 million and Rs800 million are eligible to apply.

Usage of Asaan Karobaar SME Card

The Asaan Karobaar SME Card can be used for vendor payments, utility bills, and government fees. However, cash withdrawals are capped at 25% of the loan limit. Borrowers must register with the Punjab Revenue Authority (PRA) or Federal Board of Revenue (FBR) within six months of receiving the card.

For further details and applications, visit the official website: akc.punjab.gov.pk/cmpunjabfinance.