CM Punjab Assan Karobar Finance Scheme 2025- Eligibility & Application Procedure
CM Punjab Assan Karobar Finance
The Punjab govt has introduced a major facility for the small and medium entrepreneurs of the province called CM Punjab Assan Karobar Finance Scheme 2025. The main objective of this scheme is to provide financial assistance to the youth and business community. So that they can establish, grow their businesses and play an active role in the economy.
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This scheme has been developed in collaboration with the Punjab govt and Bank of Punjab (BOP), while the Punjab govt will provide interest subsidy through the Punjab Small Industries Corporation (PSIC) so that entrepreneurs can get easy and interest-free loans.
Objective of the scheme
The objective of the Assan Karobar Finance Scheme is to provide financial assistance to the small and medium enterprises of Punjab so that they can increase their production, create employment opportunities, increase exports and strengthen the economy of the province.
This loan can be availed for the following purposes:
- Starting a new business
- Expansion of an existing business
- Repair or replacement of business machinery
- Investment as working capital
- Lease facility for commercial vehicles or logistics services
Targeted sectors
All sectors of Punjab, including Agri-SMEs, are eligible under this scheme. This means that every entrepreneur involved in industry, trade, services, agriculture and technology can benefit from it.
Key features of the scheme
Punjab Assan Karobar Finance Scheme is divided into two tiers so that entrepreneurs of different levels can avail the loan as per their requirement.
| Feature | Tier 1 (T1) | Tier 2 (T2) |
|---|---|---|
| Loan Amount | PKR 1 million to PKR 5 million | PKR 5 million to PKR 30 million |
| Security | Personal guarantee only | Residential, commercial, or industrial property as security |
| Business Type | Small enterprises | Small and medium enterprises |
| Repayment Method | Monthly installments | Monthly installments |
| Profit Rate | 0% (Interest-free) | 0% (Interest-free) |
| Tenure | Up to 5 years, with a grace period of 6 months for new businesses | Up to 5 years, with a grace period of 3 months for existing businesses |
This loan is completely interest-free and backed by the Govt of Punjab’s guarantee.
Security Details
Only personal guarantee is required for Tier 1 (T1).
- Net worth statement of the applicant or partners will be required, which should be filed with the FBR.
The following options are given in the form of collateral for Tier 2 (T2):
- Mortgage of residential or commercial property
- Any other acceptable security as per the bank’s norms
If the loan is taken for a commercial vehicle, the vehicle itself will be registered in the name of the bank and will be considered as security.
Borrower’s Equity Participation
The applicant will have to contribute some percentage of capital himself before availing the loan.
- No capital is required in Tier 1 (except for leased vehicles)
- Minimum 25% for commercial vehicles
- 20% for Tier 2
- 10% concessional rate for women, transgenders and disabled people
- This capital can be deposited in the form of cash or property.
Insurance and other expenses
- Full insurance of the property or vehicle acquired under the loan is mandatory.
- The first year’s insurance fee will be deposited at the time of loan disbursement.
- Documents, legal proceedings, registration or other bank charges will be the responsibility of the applicant.
Processing Fee
| Category | Processing Fee |
|---|---|
| Tier 1 | Rs. 5,000 |
| Tier 2 | Rs. 10,000 |
Payment and Installment System
- The loan will be repaid in equal monthly installments.
- The schedule of the first installment will depend on when the loan is sanctioned.
- If the installment is paid late, a penalty of one rupee per day for every 1000 rupees will be imposed.
Eligibility Criteria
Only those individuals who meet the definition of SME (Small & Medium Enterprises) as per the State Bank can benefit from this scheme.
The key points of eligibility are as follows:
- Annual business income:
- Small business: up to 15 crore rupees
- Medium business: between 15 crore rupees and 80 crore rupees
- The applicant should be an active tax filer.
- Should be between 25 and 55 years of age.
- Should be a resident of Punjab.
- Should be established in Punjab.
- Proof of ownership or tenancy of the business premises.
- Credit history should be clean.
- CNIC and NTN number should be valid and active.
Only one loan can be taken on one business.
Loan Limit and Debt Burden Ratio
- Tier 1: Loan up to 40 percent of the applicant’s monthly income can be given.
- Tier 2: Loan up to 50 percent of the applicant’s monthly income can be given.
Special Facility for Women, Persons with Disabilities and Transgenders
- The Punjab government has made special concessions to empower the weaker sections of the society.
- Women, Transgenders and Persons with Disabilities will be required to contribute only 10 percent capital under Tier 2, which is a big advantage over the rest of the participants.
How to Apply
- Applicants will have to visit the online platform https://akf.punjab.gov.pk/landing and fill the form.
- Fill all the information correctly and upload the required documents.
After submitting the application, Bank of Punjab will verify your details and the amount will be transferred directly to the account once the loan is approved.
FAQs
Q1: What is the purpose of this program?
The program aims to support individuals and businesses by providing financial and investment opportunities in a transparent and easy process.
Q2: What documents are required for application?
Basic identification documents such as CNIC, proof of income, and other relevant certificates may be required.
Q3: How can I apply for the program?
Applicants can apply online through the official government website or visit designated centers for registration.
Q4: How long does the approval process take?
The processing time varies but usually takes a few weeks after submission of all required documents.
Q5: Is there any age limit to apply?
Yes, applicants must meet the minimum age requirement, typically 18 years or above.
Q6: How can I check my application status?
You can check the status online through the official portal using your CNIC or reference number.
Conclusion
CM Punjab Assan Karobar Finance Scheme 2025 is a revolutionary step of the Punjab Government towards making youth, entrepreneurs and women financially stable. This scheme not only provides interest-free loans but also provides guidance for setting up and expanding businesses. If you have a good business idea and are waiting for financial support, then this scheme is the best opportunity to turn your dream into reality.
