The Asaan Karobar Loan Program helps small business owners and new entrepreneurs in Punjab. It gives interest-free loans up to PKR 1 million. This program provides financial support to start and grow businesses. The application process is fully digital and easy. It ensures transparency and quick access to funds. Borrowers can use the loan to meet business needs.
Key Features of Asaan Karobar Loan Program
This program has many benefits for small businesses. Here are the main features:
- Loan amount up to PKR 1 million
- Loan term is 3 years
- Revolving credit available for 12 months
- Repayment starts after 1 year in 24 equal monthly payments
- Grace period of 3 months before repayments begin
- 0% interest on the loan
- Loan can be used for:
- Paying suppliers and vendors
- Paying utility bills and government fees
- Withdrawing up to 25% cash for business use
- Digital payments through mobile apps or POS machines
Eligibility Criteria
To apply for this loan you must meet the following conditions:
- Age between 21 and 57 years
- Must be a Pakistani citizen living in Punjab
- CNIC and mobile number should be registered in your name
- Business must be in Punjab (new or existing)
- Must pass a credit and psychometric test
- No past loan defaults or overdue payments
- Only one application allowed per person or business
- Must register with PRA or FBR within six months of loan approval
How to Apply for Asaan Karobar Loan
The process is simple and fully online. Follow these steps:
- Visit the PITB portal and fill out the online form
- Pay a PKR 500 processing fee (non-refundable)
- Your CNIC business and credit history will be verified digitally
- Once approved your card will be issued to access the loan
Asaan Karobar Card 10 Lac Loan
Loan Usage and Repayment
The program has clear rules for loan usage and repayment:
- First 50% of the loan can be used within the first 6 months
- Grace period of 3 months before repayment starts
- Minimum monthly payment is 5% of the loan balance after the grace period
- Remaining 50% of the loan is available after timely repayments and tax registration
- The full loan must be repaid in 2 years through monthly installments
- Loan cannot be used for personal expenses like entertainment
Additional Charges and Fees
Even though the loan is interest-free there are some fees:
- Annual card fee of PKR 25000 plus FED deducted from the loan limit
- Life insurance card issuance and delivery charges are included in the scheme
- Late payment charges apply as per the bank’s policy
Security and Verification
To ensure responsible use of the loan these measures are in place:
- Borrowers must provide a digital personal guarantee
- Loan includes life insurance coverage
- Business premises will be verified within 6 months and checked annually
Support for Applicants
To help entrepreneurs the program offers:
- Business feasibility studies on PSIC and Bank of Punjab websites
- Helpline support by calling 1786
- Latest updates and application details on akf.punjab.gov.pk
FAQs
1. Can I apply if my business is not yet started?
Yes both new and existing businesses in Punjab can apply.
2. Is there a fine for late repayments?
Yes late payments will have charges as per bank policy.
3. Can I withdraw the full loan amount in cash?
No cash withdrawal is limited to 25% of the loan for business use.
4. What if I don’t register with PRA or FBR within six months?
If you do not register your loan access may be restricted.