Islamabad, Feb 18: Punjab Chief Minister Maryam Nawaz has introduced the ‘Asaan Karobaar’ programme, a groundbreaking initiative designed to provide interest-free loans to startups and Small and Medium Enterprises (SMEs) across the province. This initiative aims to boost economic growth by offering financial support to new and existing businesses, making funding more accessible than ever before.
Interest-Free Loans for Business Growth
During the launch event in Lahore, CM Maryam Nawaz emphasized that this is Punjab’s first-ever large-scale interest-free financing programme. Under the scheme, entrepreneurs can avail loans ranging from Rs1 million to Rs30 million to establish or expand their businesses. To further promote entrepreneurship, land will also be provided at subsidized rates.
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Several entrepreneurs have already benefited from the scheme. Among them, Asif from Faisalabad received Rs30 million for a pharmaceutical venture, while Wajahat Fareed from Rawalpindi secured Rs30 million for a software company. Likewise, Lahore’s Arshad obtained Rs30 million for a sports export business. Other recipients include Ali Asif from Sahiwal, who received Rs5 million for a furniture business, and Afzal, who secured Rs3.175 million for a transport business.
Loan Structure and Repayment Terms
The ‘Asaan Karobaar Finance Scheme’ is structured into two tiers:
- Tier 1: Loans ranging from Rs1 million to Rs5 million with a nominal processing fee of Rs5,000.
- Tier 2: Loans between Rs6 million and Rs30 million, with a processing fee of Rs10,000.
Both tiers feature a 0% interest rate and a repayment period of up to five years. Startups will receive a six-month grace period, while existing businesses will have a three-month grace period before repayments begin. Monthly installments will be fixed, and overdue payments will incur a minimal penalty of Rs1 per Rs1,000 per day.
The Bank of Punjab is managing loan disbursements, and applicants do not need an NOC, business licence, or prior approval to qualify. CM Maryam Nawaz highlighted the initiative’s ease of access, stating, “Apply today and start your business tomorrow.”
Eligibility Criteria for the Asaan Karobaar Scheme
To apply, applicants must:
- Be aged 21 to 57 years.
- Possess a valid CNIC and a registered mobile number.
- Own or plan to establish a business in Punjab.
- Be a tax filer with a good credit history.
- Provide necessary business and residential documentation.
The programme is open to small businesses with annual sales of up to Rs150 million and medium-sized businesses with revenue between Rs150 million and Rs800 million.
Required Documents for Application
Applicants should have clear scanned copies or images of:
- CNIC and a passport-size photo.
- Tax filing proof.
- Business income and expense records.
- Business location documents (rent agreement or ownership papers).
- CNIC copies and contact details of references.
Step-by-Step Application Process
- Register: Sign up on the Punjab Information Technology Board (PITB) portal using a CNIC-linked mobile number.
- Complete Application: Set aside at least 15 minutes to fill in the required details.
- Fee Payment: Submit a non-refundable processing fee—Rs5,000 for Tier 1 and Rs10,000 for Tier 2.
- Upload Documents: Attach scanned copies of required documents.
- Track Progress: Receive a registration number and SMS updates on application status.
Asaan Karobaar SME Card Benefits
The Asaan Karobaar SME Card can be used for vendor payments, utility bills, and government-related fees. Cash withdrawals are capped at 25% of the total loan amount. Additionally, all borrowers must register with the Punjab Revenue Authority (PRA) or Federal Board of Revenue (FBR) within six months of receiving the card.
This initiative marks a significant step towards financial empowerment, making entrepreneurship more accessible and sustainable across Punjab.
