The Asaan Karobar Finance Scheme 2025 is a groundbreaking initiative by the Punjab government aimed at supporting small entrepreneurs and SMEs (Small and Medium Enterprises). This scheme provides interest-free loans to help businesses grow, create jobs, and contribute to the economic development of the province.
Whether you’re starting a new venture or expanding an existing one, this guide will walk you through everything you need to know about the scheme, including its benefits, eligibility criteria, application process, and loan details.
What is the Asaan Karobar Finance Scheme 2025?
The scheme is launched by the Government of Punjab Pakistan by the Chief Minister of Pakistan Maryam Nawaz. It designed to offer interest-free loans to eligible entrepreneurs and SMEs in Punjab. The funds are disbursed through a digital SME card, enabling structured and transparent financial transactions.
Key Features of the Scheme
- Maximum Loan Limit: PKR 1 million (Tier 1), up to PKR 30 million (Tier 2).
- Tenure: Loans are repayable over 3–5 years.
- Interest Rate: 0% (interest-free).
- Repayment Terms: Equal monthly installments.
- Grace Period: 3–6 months before repayment begins.
- Usage: Vendor payments, utility bills, taxes, and cash withdrawals (up to 25% of the loan limit) for business purposes.
Benefits of the Asaan Karobar Finance Scheme
- Interest-Free Financing
Entrepreneurs can grow their businesses without worrying about the financial burden of interest payments. - Digital Accessibility
The Karobar Card allows seamless fund management and payments through digital platforms. - Flexible Repayment Plans
Equal monthly installments make repayment manageable over several years. - Grace Period
A grace period of up to 6 months gives businesses time to stabilize before starting repayments. - Transparency and Accountability
The digital platform ensures proper fund utilization and easy tracking of transactions.
Image Source: (Rozegarhub.pk)
Understanding the Two Tiers of the Scheme
Tier 1: For Small Entrepreneurs
Eligibility Criteria
To qualify for Tier 1, applicants must meet the following requirements:
- Age: 21–57 years.
- Business Location: Must operate in Punjab.
- CNIC and Mobile Number: Must be valid and registered in the applicant’s name.
- Business Status: Can be a new or existing business.
- Credit and Psychometric Assessment: Applicants must pass both assessments.
- Clean Credit History: No overdue loans or defaults.
- Application Limit: Only one application per individual or business.
Loan Details
- Loan Amount: Up to PKR 1 million.
- Tenure: 3 years.
- Repayment Terms: Equal monthly installments over 2 years after the first 12 months.
- Grace Period: 3 months before repayments begin.
- Interest Rate: 0% (interest-free).
- Processing Fee: PKR 500 (non-refundable).
- Annual Card Fee: PKR 25,000 + Federal Excise Duty (FED).
How to Apply for Tier 1
- Submit a Digital Application
Visit the PITB portal to complete your application online. - Verification Process
Your CNIC, credit history, and business premises will be verified digitally. - Pay the Processing Fee
A non-refundable fee of PKR 500 is required during the application process. - Receive Funds Digitally
Approved funds will be credited to your Karobar Card for business use.
Restrictions on Loan Usage
- Funds must be used strictly for business purposes, such as supplier payments, utility bills, and taxes.
- Personal expenses or non-business transactions are prohibited.
Watch the video for Practical Steps: https://youtu.be/RuPz5gDQGok
Tier 2: For Small and Medium Enterprises (SMEs)
Eligibility Criteria
Tier 2 targets established SMEs and has stricter requirements:
- Age: 25–55 years.
- Annual Sales:
- Small Enterprises: Up to PKR 150 million.
- Medium Enterprises: Between PKR 150–800 million.
- Tax Filing Status: Must be an active FBR tax filer.
- Business Location: Must operate in Punjab.
- Ownership: The business premises must be owned or rented.
Loan Details
- Loan Amount:
- Tier 2 (T1): PKR 1–5 million (personal guarantee required).
- Tier 2 (T2): PKR 6–30 million (secured guarantee required).
- Tenure: 5 years.
- Interest Rate: 0% (interest-free).
- Processing Fee:
- PKR 5,000 for loans under PKR 5 million.
- PKR 10,000 for loans above PKR 5 million.
- Grace Period:
- Startups/New Businesses: 6 months.
- Existing Businesses: 3 months.
Equity Contribution
- 0% for T1 loans (except leased vehicles).
- 20–25% for leased vehicles and other loans.
- 10% for women, transgender individuals, and differently-abled persons.
How to Apply for Tier 2
- Check Eligibility
Ensure your business meets the necessary criteria, including tax filer status and credit history. - Submit Application Online
Apply through the PITB portal. - Pay the Processing Fee
Pay PKR 5,000 or PKR 10,000 based on your loan type. - Provide Security or Guarantee
Personal or secured guarantees are required depending on the loan amount. - Loan Disbursement
Approved funds are disbursed digitally.
Watch the video for Practical Steps: https://youtu.be/RuPz5gDQGok
FAQs
1. Can I apply for both Tier 1 and Tier 2 loans?
No, applicants can only apply for one loan per individual or business.
2. What happens if I delay repayments?
A late payment fee of PKR 1 per 1,000/day will be charged for overdue amounts.
3. Can I use the loan for personal expenses?
No, the loan must be used strictly for business-related expenses.