The Asaan Karobar Loan Program is a transformative initiative aimed at empowering small business owners and aspiring entrepreneurs in Punjab. Offering interest-free loans of up to PKR 1 million, this scheme provides financial stability and the tools to build and expand businesses efficiently. With its streamlined, fully digital process, the program ensures transparency and accessibility, allowing borrowers to meet their financial goals effectively.
If you’re planning to apply for this incredible opportunity, here’s a detailed breakdown of the key requirements, features, and application process to help you succeed.
Key Features of the Asaan Karobar Loan Program
This program comes with numerous benefits tailored to support small businesses. Here’s what makes it unique:
- Loan Limit: Up to PKR 1 million.
- Loan Tenure: 3 years.
- Loan Type: Revolving credit for 12 months.
- Repayment Terms: 24 equal monthly installments starting after the first year.
- Grace Period: A 3-month break from card issuance before repayments begin.
- Interest Rate: 0%, making it a truly interest-free loan.
- Usage Flexibility:
- Payments to suppliers and vendors.
- Settlement of utility bills, government fees, and taxes.
- Cash withdrawal of up to 25% of the loan limit for business purposes.
- Digital payments through mobile apps or POS systems.
Eligibility Criteria for the Asaan Karobar Loan Program
To qualify for the program, applicants must meet the following conditions:
- Age Range: Applicants must be between 21 and 57 years old.
- Residency: Only Pakistani nationals residing in Punjab are eligible.
- Valid CNIC and Contact Details: Your CNIC and mobile number must be registered under your name.
- Business Location: The business must operate in Punjab, whether it’s existing or a prospective venture.
- Credit Assessment: Satisfactory credit and psychometric evaluation is mandatory.
- Clean Credit History: Applicants should have no history of overdue loans or defaults.
- Application Limit: Only one application per individual or business entity is allowed.
- Tax Registration: Mandatory registration with the Punjab Revenue Authority (PRA) or Federal Board of Revenue (FBR) within six months of card issuance.
Also Read: STI Teacher Internship Program 2025
How to Apply for the Asaan Karobar Loan
The application process is designed to be hassle-free and fully digital. Here’s how you can apply:
- Submit Your Application: Visit the Punjab Information Technology Board (PITB) portal to fill out the online application form.
- Processing Fee: Pay a non-refundable processing fee of PKR 500.
- Verification Process: Digital verification of your CNIC, creditworthiness, and business premises will be conducted by authorized agencies.
- Approval and Card Issuance: Once approved, your card will be issued for loan access.
Loan Usage and Repayment Details
The program provides clear guidelines for loan usage and repayment to ensure financial discipline:
| Details | Description |
|---|---|
| First 50% Limit | Accessible within the first 6 months. |
| Grace Period | A 3-month repayment holiday after card issuance. |
| Monthly Minimum Payment | 5% of the outstanding balance (principal only) after the grace period ends. |
| Second 50% Limit | Released upon timely usage, repayments, and tax registration with PRA or FBR. |
| Repayment Term | The balance is repayable over 2 years through equal monthly installments (EMIs). |
| Restricted Usage | Non-business-related expenses such as entertainment and personal purchases are strictly prohibited. |
Additional Costs and Fees
Although the scheme is interest-free, there are some nominal charges to keep in mind:
- Annual Card Fee: PKR 25,000 + Federal Excise Duty (FED), deducted directly from the loan limit.
- Other Charges: Includes life insurance, card issuance, and delivery fees, all covered under the scheme.
- Late Payment Charges: Applicable as per the bank’s policy.
Security and Verification Measures
To maintain accountability and ensure proper usage, the program includes the following safeguards:
- Personal Guarantee: Borrowers must provide a digital personal guarantee.
- Life Assurance: The loan portfolio includes life assurance coverage.
- Business Verification: The Urban Unit will verify business premises within six months of approval and conduct annual checks.
Support for Applicants
To assist entrepreneurs, the program provides additional resources:
- Feasibility Studies: Available on the Punjab Small Industries Corporation (PSIC) and Bank of Punjab websites to help startups develop business plans.
- Helpline: Dial 1786 for immediate support and queries.
- Official Website: Visit akf.punjab.gov.pk for the latest updates and application details.
Also Read: How To Apply For Magnificent Punjab Internship Program 2025
FAQs
1. Can I apply if my business is not yet operational?
Yes, the scheme is open to both existing and prospective businesses located in Punjab.
2. Is there any penalty for late repayments?
Yes, late payments are subject to charges as per the bank’s policy.
3. Can I withdraw the entire loan amount in cash?
No, cash withdrawals are limited to 25% of the loan limit for business purposes only.
4. What happens if I don’t register with PRA or FBR within six months?
Failure to register with PRA or FBR within the stipulated time may lead to restrictions on loan access.
5. Is there any guarantee required for the loan?
Yes, borrowers must provide a digital personal guarantee as part of the application process.