The Asaan Karobar Loan Scheme is designed to empower small entrepreneurs in Punjab by providing interest-free loans of up to PKR 1 million. This scheme, structured through digital platforms like mobile apps and POS systems, ensures transparency and supports businesses in managing their funds effectively.
Here’s everything you need to know about the scheme and the requirements to apply.
Key Features of the Asaan Karobar Loan Scheme
- Loan Limit: Up to PKR 1 million
- Loan Tenure: 3 years
- Loan Type: Revolving credit for 12 months
- Repayment Term: 24 equal monthly installments after the first year
- Grace Period: 3 months from card issuance before repayment starts
- Usage Options:
- Payments to vendors and suppliers
- Utility bills, government fees, and taxes
- Cash withdrawal (up to 25% of the limit) for business purposes
- Digital payments through POS or mobile apps
- Interest Rate: 0%
Eligibility Criteria for Asaan Karobar Card
To apply for the Asaan Karobar Loan Scheme, you must meet the following requirements:
- Age Range: 21 to 57 years
- Residency: Pakistani national residing in Punjab
- Valid CNIC and Contact: Your CNIC and mobile number must be registered in your name.
- Business Location: Existing or prospective business in Punjab
- Credit Assessment: Satisfactory credit and psychometric evaluation
- Clean Credit History: No overdue loans or default history
- Application Limit: Only one application per individual and business
- Tax Registration: Mandatory registration with PRA or FBR within six months of card issuance
How to Apply for the Chief Minister Asaan Karobar Card Loan?
The application process is simple and fully digital:
- Submit your application through the PITB portal.
- Pay a non-refundable processing fee of PKR 500.
- Verification of your CNIC, creditworthiness, and business premises will be conducted digitally by authorized agencies.
Loan Usage and Repayment Details
| Details | Description |
|---|---|
| First 50% Limit | Available for use within the first 6 months |
| Grace Period | 3 months after card issuance before monthly installments begin |
| Repayment After 3 Months | Minimum monthly payment: 5% of the outstanding loan balance (principal only) |
| Second 50% Limit | Released upon satisfactory usage, timely repayments, and tax registration (PRA/FBR) |
| Repayment Term | Remaining balance repaid over 2 years in equal monthly installments (EMIs) |
| Allowed Usage | Business-related activities such as vendor payments, bills, taxes, and cash withdrawal for business purposes |
| Restricted Usage | Non-business-related transactions like personal expenses and entertainment are blocked |
Charges and Fees
- Annual Card Fee: PKR 25,000 + FED (deducted from the loan limit)
- Other Charges: Includes life assurance, card issuance, and delivery fees (covered by the scheme)
- Late Payment Charges: As per the bank’s policy
Security and Verification
- Borrowers must provide a personal guarantee digitally.
- Life Assurance: Included in the loan portfolio.
- Physical Verification: Urban Unit verifies business premises within 6 months of approval and conducts annual checks.
Additional Support for Applicants
- Feasibility Studies: These are available on the PSIC and Bank of Punjab websites for new businesses and startups.
- Helpline: Dial 1786 for assistance.
- Official Website: Visit akf.punjab.gov.pk for the latest updates.
This comprehensive guide simplifies the process of understanding and applying for the Asaan Karobar Loan Scheme, empowering small entrepreneurs in Punjab to achieve their business goals.