How to Apply For Interest-Free Loans With Punjab’s Asaan Karobar Scheme

The Punjab government has launched an interest-free loan program to support small and medium enterprises (SMEs) across various sectors.

The initiative aims to assist entrepreneurs with starting new businesses, expanding operations, modernizing infrastructure, managing working capital, and promoting eco-friendly ventures.

The program offers two tiers of loans:

• Tier 1: Between Rs. 1 million and Rs. 5 million, requiring a personal guarantee with a maximum term of five years, no interest, and a processing fee of Rs. 5,000.
• Tier 2: From Rs. 6 million to Rs. 30 million, requiring secured collateral. The tenure and interest terms are the same as Tier 1, with a processing fee of Rs. 10,000.

Repayments are made in equal monthly installments, with late fees of PKR 1 per PKR 1,000 per day on overdue amounts.

Application Process

Applicants must prepare the following documents:

• Passport-sized photo and CNIC
• Mobile number registered with CNIC
• CNICs and contact details of two non-relative references
• Proof of active tax filer status
• Business income and expense records
• Property-related documents (e.g., rental agreement, transfer letter)
• Collateral documentation
• Application fee payment

You start by creating an account, filling out the form (approximately 15 minutes), and uploading documents. A non-refundable fee of Rs. 5,000 or Rs. 10,000 applies, depending on the tier.

After submission, applicants will receive a registration number via SMS and updates on their status. Application tracking is available online and you’ll receive a notification if your loan is approved.