The Punjab Government has introduced the Asaan Karobar Scheme, a groundbreaking initiative aimed at supporting small and medium-sized enterprises (SMEs) in the province. Through this scheme, the government is offering interest-free loans to entrepreneurs, enabling them to meet various business needs, from startups to expansion, innovation, and more.
What is the Asaan Karobar Scheme?
The Asaan Karobar Scheme is designed to help SMEs overcome financial barriers by providing interest-free loans for a wide range of business activities. These include the establishment of new businesses, expanding existing ones, introducing innovative solutions, and ensuring climate-friendly business operations.
The scheme is divided into two tiers to cater to different funding needs:
- Tier 1: This option provides loans ranging from PKR 1 million to PKR 5 million, with a five-year term and 0% interest. It requires a personal guarantee from the borrower and a processing fee of PKR 5,000.
- Tier 2: This option offers loans between PKR 6 million and PKR 30 million, with a five-year term and 0% interest. However, collateral is required for this tier, and the processing fee is PKR 10,000.
Both tiers come with favorable terms, making the scheme an ideal opportunity for aspiring and established business owners.
Repayment Details
Repayment for the loans will be in equal monthly installments based on the approval terms. A daily late surcharge, ranging from PKR 1 to PKR 1,000, will apply if the borrower fails to make timely payments.
How to Apply for the Asaan Karobar Scheme
The application process for the Asaan Karobar Scheme is straightforward. Follow these steps to apply:
- Gather Required Documents: Applicants must prepare several documents before starting the application. These include:
- Passport-sized photographs
- Clear scanned copies of the National ID card
- Mobile number registered with the ID card
- Two references (non-blood relatives)
- Proof of active tax filer status
- Business income and expenditure details
- Lease agreements or property documents
- Create an Account: Applicants need to create an account on the official portal to begin the application process.
- Fill Out the Application: Complete the application form, ensuring you allocate at least 15 minutes for the task.
- Submit the Form: Once the form is completed, submit it and upload any additional necessary documents.
- Pay the Application Fee: A processing fee of PKR 5,000 for Tier 1 and PKR 10,000 for Tier 2 is required. These fees are non-refundable.
After submission, applicants will receive a registration number and SMS updates about the application status. You can also track your application progress on the designated website.
Why Should You Apply?
The Asaan Karobar Scheme offers a unique chance for entrepreneurs to access capital without the burden of high-interest rates. The zero-interest loans, minimal processing fees, and flexible repayment terms make this scheme an excellent opportunity for businesses looking to grow, innovate, and contribute to the economy of Punjab.
For more details on eligibility and the application process, visit the official website or contact the relevant authorities.
Apply now and take the first step toward growing your business with the Asaan Karobar Scheme!