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 offer loans ranging from Rs1 million and Rs5 million with flexible repayment options tailored to the needs of individual businesses. The government aims to make the application process streamlined and accessible, ensuring that eligible businesses can quickly access the necessary financial support.
Main Highlights of the Asaan Karobar Finance Scheme:
- Interest-Free Loans: The scheme’s core feature is the provision of interest-free loans, easing the financial burden on small businesses.
- Focus on SMEs: The initiative specifically targets SMEs, recognizing their crucial role in driving economic growth and job creation.
- 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 individual circumstances.
Applicants should be within the age range of 25 to 55 years. It is essential that they are active taxpayers who are registered with the Federal Board of Revenue (FBR) and possess a clean credit history.
Additionally, having a valid CNIC and NTN is 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 an interest rate of 0 percent.
In Tier 2, loan amounts vary from Rs6 million to Rs30 million, also featuring a five-year repayment term and an interest rate of 0 percent.
Those applying in Tier 1 will incur a processing fee of Rs5,000, while applicants for Tier 2 must pay a fee of Rs10,000.
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,” which is 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,” offering interest-free loans that reach up to 30 million rupees.
Under the Asaan Karobar Finance Scheme, interest-free loans ranging from Rs1 million to Rs30 million will be made 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, leading to increased economic activity and job creation.
- Empower Small Businesses: Provide a lifeline to struggling businesses and enable 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.
Maryam Nawaz Sharif, in her address at the launch, stated that loans worth Rs 5 lakh to Rs 10 lakh will be provided through the Asaan Karobar Card. The program ensures 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, eliminating a significant financial burden for 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 of up to 25% of the limit for miscellaneous business purposes.
- Loan usage and repayment details: The initial 50% of the loan limit is available for use within the first six months. After a three-month grace period following card issuance, borrowers start paying monthly installments, with a minimum monthly 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:
- Create an account: Applicants need to register on the Punjab Information Technology Board (PITB) portal using their CNIC-linked mobile number.
- Fill 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.
- Submit the application: After completing the form and uploading the necessary documents, applicants can submit their application.
- 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: By supporting SMEs, the Asaan Karobar Card contributes to Punjab’s economic development.
- 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 in the future.
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 a larger number of entrepreneurs.
- Enhanced features: New features and services could be added to the card, 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 is a significant initiative with the potential to empower small entrepreneurs in Punjab. By providing interest-free loans, simplifying the application process, and promoting digital transactions, the program addresses critical challenges faced by SMEs. While some limitations exist, the positive public and media response, coupled with the government’s commitment to supporting small businesses, suggests a bright future for the Asaan Karobar Card.
The program’s alignment with the government’s economic goals, particularly 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; it is a catalyst for economic growth and development in Punjab, paving the way for a more prosperous future for the province and its entrepreneurs.