Lahore, In a significant move to boost economic activity in Punjab, Chief Minister Maryam Nawaz has launched the “Asaan Karobar Finance Scheme.” This initiative aims to provide interest-free loans to small and medium-sized enterprises (SMEs) across the province, fostering entrepreneurship and creating new job opportunities.
The scheme will provide loans between Rs 1 million and Rs 5 million, featuring flexible repayment options tailored to each business’s unique needs. The government aims to streamline and make the application process easily accessible, ensuring eligible businesses can swiftly obtain the required financial support.
Main Highlights of the Asaan Karobar Finance Scheme:
- Interest-Free Loans:** The primary feature of this scheme is the provision of interest-free loans, which helps alleviate the financial burden on small businesses.
- Focus on SMEs:** This initiative targets small and medium-sized enterprises (SMEs), acknowledging their vital role in driving economic growth and creating jobs.
- Simplified Application Process: The application process is designed to be user-friendly, minimizing bureaucratic hurdles and enabling swift access to funds.
- Flexible Repayment Options:** The scheme offers flexible repayment schedules, allowing businesses to repay loans at a pace that suits their circumstances.
Applicants should be between 25 and 55 years old. They must also be active taxpayers registered with the Federal Board of Revenue (FBR) and possess a clean credit history.
Additionally, a valid CNIC and NTN are required. Applicants must either own or lease the premises from which their business operates.
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Asaan Karobar Finance Scheme Categories
In Tier 1, businesses are eligible for loans between Rs1 million and Rs5 million, with a repayment span of up to five years at a 0 percent interest rate.
In Tier 2, loan amounts vary from Rs6 million to Rs30 million. The loans also feature a five-year repayment term and a 0 percent interest rate.
Applicants in Tier 1 will incur a 5,000 processing fee, while applicants in Tier 2 must pay a 10,000 fee.
New startups and businesses will enjoy a grace period of up to six months, whereas existing enterprises are eligible for a three-month grace period.
Asaan Karobar Finance Scheme Repayment Details
Loan repayments are to be made in equal monthly installments based on the terms agreed upon during the approval process. For any overdue payments, there will be a late charge of PKR 1 per each 1,000 rupees per day.
For more detailed information and updates regarding the scheme, please visit the website: https://akc.punjab.gov.pk/cmpunjabfinance.
Earlier, Maryam Nawaz Sharif inaugurated the “Asaan Karobar Finance Scheme,” designed to support small and medium enterprises while fostering economic growth within the province.
During the launch event in Lahore, she also unveiled the “Asaan Karobar Finance Card,” which offers interest-free loans of up to 30 million rupees.
Under the Asaan Karobar Finance Scheme, interest-free loans ranging from Rs1 million to Rs30 million will be available, with repayments structured into manageable installments.
Addressing Economic Challenges:
The Asaan Karobar Loan Scheme is seen as a crucial step in addressing the economic challenges faced by Punjab. By providing financial support to small businesses, the government aims to:
- Stimulate Economic Growth:** Encourage entrepreneurship and investment to boost economic activity and create more jobs.
- Empower Small Businesses: Provide a lifeline to struggling businesses, enabling them to expand their operations and compete more effectively.
- Reduce Unemployment: Create new job opportunities for individuals across the province, contributing to a more inclusive and prosperous economy.
A Step Towards Economic Empowerment:
Chief Minister Maryam Nawaz has emphasized the government’s commitment to empowering small businesses and creating a conducive environment for entrepreneurship. The Asaan Karobar Loan Scheme is a concrete step in this direction, reflecting the government’s vision for a vibrant and self-reliant economy in Punjab.
What is the Asaan Karobar Card?
The Chief Minister of Punjab has launched the Asaan Karobar Card as a groundbreaking initiative to support small businesses. This program offers interest-free loans of up to PKR 1 million through a digital SME card, enabling small entrepreneurs in Punjab to expand and sustain their businesses.
In her address at the launch, Maryam Nawaz Sharif stated that loans worth Rs 5 lakh to Rs 10 lakh will be provided through the Asaan Karobar Card. The program ensures the structured and transparent utilization of funds through digital channels like mobile apps and POS terminals.
Key Features of the Asaan Karobar Card
The Asaan Karobar Card is packed with features designed to make it a valuable tool for small entrepreneurs:
- Interest-Free Loans**: The program offers interest-free loans, significantly easing the financial burden on small businesses.
- Loan limit: The card provides a maximum loan limit of PKR 1 million.
- Loan tenure: The loan tenure is three years, allowing ample time for repayment.
- Revolving credit: A revolving credit facility is available for the first 12 months, providing flexibility in managing funds.
- Grace period: A three-month grace period is provided from the card issuance before repayment commences.
- Usage: The card can be used for various business-related expenses, including vendor and supplier payments, utility bills, government fees, and taxes.
- Digital transactions: The card facilitates digital transactions through POS terminals and a mobile app, promoting transparency and efficiency.
- Cash withdrawals: While primarily focused on digital transactions, the card allows cash withdrawals up to 25% of the limit for miscellaneous business purposes.
- Loan usage and repayment details: The initial 50% of the loan limit is available within the first six months. After a three-month grace period following card issuance, borrowers start paying monthly installments, with a minimum payment of 5% of the outstanding principal balance. The second 50% limit is released upon satisfactory usage, regular repayments, and registration with the Punjab Revenue Authority (PRA) and the Federal Board of Revenue (FBR).
- Key conditions: Funds usage is restricted to core business activities; non-business-related transactions are blocked. Registration with PRA/FBR is mandatory within six months of card issuance. Applications are limited to one per individual/business.
Tiered Loan System
The Asaan Karobar Finance Scheme offers loans in two tiers:
- Tier 1: This tier offers loans up to PKR 1 million with a non-refundable processing fee of PKR 500.
- Tier 2: This tier offers loans from PKR 1 million to PKR 30 million with a non-refundable processing fee of PKR 10,000.
Eligibility Criteria
To obtain an Asaan Karobar Card, applicants must fulfill the following criteria:
| Criteria | Details |
|---|---|
| Age | 21 to 57 years |
| Nationality and Residency | Pakistani national residing in Punjab |
| CNIC and Mobile Number | Valid CNIC and mobile number registered in the applicant’s name |
| Business Location | Existing or prospective business located in Punjab |
| Creditworthiness | Satisfactory credit and psychometric assessment |
| Credit History | Clean credit history with no overdue loans |
| Application Limit | One application per individual and business |
| Tax Filer | Must be a registered tax filer |
| References and Documentation | Must provide references and documentation related to business and residence |
The requirement for a satisfactory credit and psychometric assessment underscores the program’s emphasis on responsible lending and thorough borrower evaluation.
Application Process
The application process for the Asaan Karobar Card is designed to be simple and efficient:
- Please create an account**: Applicants need to register on the Punjab Information Technology Board (PITB) portal using their mobile number linked to their CNIC.
- Fill out the application form: Applicants must complete the application form, which takes approximately 15 minutes.
- Pay the processing fee: A non-refundable processing fee of PKR 500 is required.
- Apply**: Applicants can submit their application after completing the form and uploading the necessary documents.
- Track the application status: Applicants will receive a registration number and SMS updates regarding their application status.
Benefits of the Asaan Karobar Card
The Asaan Karobar Card offers numerous benefits to small entrepreneurs:
- Access to finance: The card provides access to capital, enabling businesses to invest in growth and expansion.
- Interest-free loans: The absence of interest makes the loans more affordable and sustainable.
- Simplified process: The digital application process and quick approval times make accessing finance easier and faster. Notably, no NOC, license, or map approval is immediately required to obtain a loan, streamlining the process.
- Improved cash flow: The revolving credit facility allows businesses to manage their cash flow more effectively.
- Digital empowerment: The card promotes digital literacy and financial inclusion.
- Economic growth: The Asaan Karobar Card contributes to Punjab’s economic development by supporting SMEs.
- Incentives for export-oriented businesses: The government plans to provide free solar systems worth Rs 50 lakh to those setting up industries in export processing zones, further incentivizing businesses and promoting exports.
Future Prospects
The Asaan Karobar Card holds promising prospects for the future of SMEs in Punjab. The government’s commitment to promoting small businesses and providing them with access to finance suggests that the program may be expanded and enhanced.
Potential future developments include:
- Increased loan limit: The loan limit could be increased to cater to businesses with higher capital needs.
- Expanded geographical coverage: The program could be extended to other provinces, benefiting more entrepreneurs.
- Enhanced features: The card could be improved with new features and services, such as access to training and mentorship programs.
- Integration with other government initiatives: The card could be integrated with other government schemes to provide a more comprehensive support system for SMEs.
Conclusion
The Asaan Karobar Card represents a vital effort to empower small business owners in Punjab. It tackles major issues SMEs face by offering interest-free loans, streamlining the application process, and encouraging digital transactions. Although there are some drawbacks, the public and the media’s favorable reactions and the government’s dedication to aiding small enterprises indicate a promising outlook for the Asaan Karobar Card.
The program’s alignment with the government’s economic goals, mainly its focus on promoting specific sectors and resource utilization, further strengthens its potential for long-term sustainability. The Asaan Karobar Card is not merely a financial tool but a catalyst for economic growth and development in Punjab, paving the way for a more prosperous future for the province and its entrepreneurs.