The Asaan Karobar Card, introduced by the Punjab government, is an innovative initiative aimed at empowering small businesses and entrepreneurs. With interest-free loans of up to PKR 1 million, this program provides much-needed financial support to foster sustainable business growth. The repayment policy is flexible and borrower-friendly, ensuring entrepreneurs can repay their loans conveniently. This guide provides detailed insights into the repayment policy, key features, and other essential information about the Asaan Karobar Card loan.
Overview of the Asaan Karobar Card Loan
The Asaan Karobar Card is designed to alleviate the financial challenges of small businesses and startups. By offering a revolving credit facility and a structured repayment policy, this initiative ensures that entrepreneurs have access to capital without the burden of interest.
Key Details of the Loan:
| Feature | Details |
|---|---|
| Loan Amount | Up to PKR 1 million |
| Loan Tenure | 3 years |
| Grace Period | 3 months from loan disbursement |
| Repayment Mode | Monthly installments after the first year |
Key Features of the Loan Repayment Policy
- Interest-Free Loans:
The entire loan amount is provided without any interest charges. This reduces financial stress on entrepreneurs and encourages them to focus on business growth. - Grace Period:
Borrowers are given a three-month grace period before repayments begin. This allows businesses to utilize the loan effectively before repaying. - Revolving Credit Facility:
During the first year, borrowers can withdraw and repay amounts multiple times within the approved credit limit. This flexibility helps manage cash flow challenges. - Monthly Installments:
After the first year, the remaining balance is converted into 24 equal monthly installments for repayment over the next two years. - Cash Withdrawal:
Borrowers can withdraw up to 25% of the loan in cash for immediate business needs. - Digital Transactions:
The program promotes transparency and convenience by encouraging digital payments.
Detailed Repayment Structure
The repayment structure of the Asaan Karobar Card is designed with the convenience of borrowers in mind. Here’s how it works:
- Loan Tenure:
The total repayment period is three years. - Grace Period:
Borrowers enjoy a three-month grace period from the date of loan disbursement before repayments begin. - First Year:
Borrowers can utilize the revolving credit facility during the first 12 months. They can withdraw and repay funds multiple times within the approved limit. - Second and Third Years:
After the first year, the remaining loan amount is converted into 24 equal monthly installments for the next two years. This ensures predictable and manageable payments.
Also Read: 8 Easy Requirements To Get Asaan Karobar Loan Scheme 2025
Late Payment and Penalties
Timely repayment is critical to maintaining a good credit record. Borrowers who miss payments may face penalties or additional charges as per the bank’s policy. Here’s what you need to know:
- Late Payment Charges:
Missing an installment can result in late payment fees. - Impact on Credit Record:
Repeated delays can negatively affect the borrower’s credit standing, making it difficult to access future financial support.
Pro Tip: Always ensure timely payments to avoid penalties and maintain a strong credit history.
Support and Assistance for Borrowers
To make the repayment process smooth, the Punjab government offers comprehensive support services:
- Dedicated Helpline:
Borrowers can call 1786 for guidance on repayment policies, loan details, or other queries. - Online Support:
The official website provides detailed resources, FAQs, and contact options to assist borrowers at every step. - Local Branches:
Borrowers can also visit local branches for in-person assistance related to their loan.
Related Searches!
- Can I repay the loan earlier than the designated tenure?
Yes, early repayment is allowed and can positively impact your credit standing. - What happens if I miss an installment?
Missing an installment may lead to penalties and negatively affect your credit record. - Is collateral required for the loan?
No, the Asaan Karobar Card loan is unsecured and does not require any collateral. - Can I apply for another loan after repaying my current one?
Yes, borrowers who successfully repay their loan are eligible to reapply under the scheme. - Where can I get more information or assistance?
Borrowers can contact the helpline (1786), visit the official website, or consult a local branch for support.