The Asaan Karobar Loan Scheme is a groundbreaking initiative launched by the Punjab government to empower small and medium-sized enterprises (SMEs) across the province. Spearheaded by Chief Minister Maryam Nawaz Sharif, this program aims to stimulate economic growth by providing interest-free loans to entrepreneurs, facilitating business expansion, job creation, and increased exports.
Key Features of the Asaan Karobar Loan Scheme:
- Loan Amounts:
- Tier 1: Unsecured loans ranging from PKR 1 million to PKR 5 million, requiring personal guarantees.
- Tier 2: Secured loans between PKR 6 million and PKR 30 million.
- Eligibility Criteria:
- Applicants aged between 25 and 55 years.
- Active Federal Board of Revenue (FBR) tax filers with a clean credit history.
- Valid Computerized National Identity Card (CNIC) and National Tax Number (NTN).
- Ownership or rental agreement of the business premises.
- Loan Tenure and Repayment:
- Repayment period of up to five years.
- Grace period of six months for startups and three months for existing businesses.
- Equal monthly installments with a nominal late fee of PKR 1 per 1,000 per day on overdue amounts.
- Processing Fees:
- PKR 5,000 for Tier 1 applicants.
- PKR 10,000 for Tier 2 applicants.
In addition to the loan scheme, the government has introduced the Asaan Karobar Finance Card, offering interest-free loans of up to PKR 1 million for a tenure of three years, with a three-month grace period. This digital solution ensures funds are utilized strictly for business activities through platforms like mobile apps and point-of-sale systems, benefiting over 100,000 small businesses in Punjab.
The Asaan Karobar Loan Scheme is designed to assist entrepreneurs in establishing new businesses, expanding existing operations, and modernizing setups by providing funding for working capital, machinery upgrades, and commercial logistics. It is open to all sectors, including agricultural SMEs, aligning with the State Bank of Pakistan’s regulations.
To further support SMEs, the government offers additional incentives such as capital subsidies of up to PKR 5 million for solar equipment and cleaner production technologies, non-financial advisory services, and the development of new small industrial estates in key areas like Sialkot, Gujrat, and Quaidabad. A dedicated Tannery Zone is also planned in Sialkot to reduce water pollution and enhance leather export quality.
Looking ahead, Phase II of the Asaan Karobar Loan Scheme is set to launch in the next fiscal year (2025-26), with an extended scope at a cost of PKR 100 billion. This phase aims to accommodate around 24,000 SMEs, with a total loan disbursement portfolio of PKR 379 billion, driving continued growth and development across the province.
Through these comprehensive efforts, the Punjab government is not only providing financial support but also creating a robust ecosystem for SMEs to thrive. With interest-free loans, technical expertise, and favorable infrastructure developments, the Asaan Karobar Loan Scheme is set to transform the entrepreneurial landscape in the province, paving the way for a more prosperous future.
For more details, visit the official website: akc.punjab.gov.pk/cmpunjabfinance.