If you’re a small business owner in Punjab looking for interest-free financial support to grow your business, the Asaan Karobar Finance Scheme is exactly what you need. Launched by the Government of Punjab in collaboration with the Bank of Punjab and Punjab Small Industries Corporation, this scheme is designed to empower small and medium-sized enterprises (SMEs) by providing interest-free loans of up to Rs. 1 million.
In this article, we’ll guide you step-by-step on how to apply, who’s eligible, what the loan can be used for, and why this scheme is a golden opportunity for entrepreneurs.
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What is the Asaan Karobar Finance Scheme?
The Asaan Karobar Finance Scheme aims to support small entrepreneurs and business owners across Punjab. Through a Digital SME Card, eligible applicants can access revolving credit to manage business needs such as purchasing inventory, paying utility bills, and other business-related expenses. The entire process is digital, secure, and transparent, making it easier for people to apply from the comfort of their homes.
Who is Eligible to Apply?
Before you apply, make sure you meet the following eligibility criteria:
- Age: Must be between 21 and 57 years
- Nationality: Must be a Pakistani citizen and a resident of Punjab
- Business Location: Your business (existing or proposed) must be located in Punjab
- Identification: Must have a valid CNIC and a registered mobile number
- Credit Record: Must have a clean credit history and pass a credit check
- Tax Status: Must be an active FBR filer, or get registered within 6 months of card issuance
- Application Rule: Only one application per individual or business
This scheme is especially helpful for startups, micro-enterprises, and women-led businesses that struggle with access to traditional bank loans.
Key Features of the Loan
Here are the main features of the Asaan Karobar Finance Loan:
| Feature | Detail |
|---|---|
| Loan Amount | Up to Rs. 1 million |
| Type | Interest-free revolving credit via Digital SME Card |
| Loan Tenure | 3 years |
| Grace Period | 3 months from card issuance |
| Repayment | 5% of outstanding amount monthly (after grace period) |
| Card Validity | Revolving facility for 12 months, repayable over 2 years |
| Charges Covered | Card issuance, delivery, and life assurance included |
| Annual Fee | Rs. 25,000 + FED (deducted from the loan amount) |
What Can You Use the Loan For?
Funds from the scheme can only be used for business purposes. Here’s how you can use your loan:
- Purchasing inventory or raw materials
- Paying suppliers and vendors
- Settling utility bills and government taxes
- Business expansion or working capital
🚫 Note: Personal or non-business use of the loan is strictly not allowed.
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How to Apply Online – Step-by-Step
The application process is simple and fully digital. Here’s how you can apply:
- Visit the Official Portal
Go to https://akf.punjab.gov.pk/landing - Fill Out the Online Form
Provide your business and personal details accurately. - Pay Application Fee
Submit a non-refundable fee of Rs. 500. - CNIC & Credit Check
Your identity and creditworthiness will be verified digitally. - Business Verification
A physical verification of your business premises will be done by authorized personnel. - Get Your Digital SME Card
Once approved, you’ll receive your SME Card with a credit limit of up to Rs. 1 million.
Repayment Schedule
Here’s how the repayment works:
- First 6 months: You get access to 50% of your approved limit.
- After 3-month grace period: Repayment starts.
- Minimum repayment: 5% of the remaining amount monthly (principal only).
- Next 50%: Available after proper use of the first half and successful tax registration (FBR/PRA).
- Full repayment: Balance is paid over the remaining 2 years in equal monthly installments.
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Benefits of the Asaan Karobar Finance Scheme
The scheme offers several unique advantages:
- ✅ Interest-Free: Unlike bank loans, you don’t pay any interest.
- ✅ Easy Access: Fully digital process, apply from home.
- ✅ Transparent Transactions: All payments and fund transfers are digital.
- ✅ Flexible Use: Funds can be reused via revolving credit.
- ✅ Government-Backed: Strong support and credibility.
- ✅ Encourages Entrepreneurship: Especially for women and rural entrepreneurs.
2025 Updates – What’s New?
In 2025, the Punjab government has made several improvements to make the scheme more accessible:
- Improved user interface on the PITB portal
- Better integration with banks for faster digital payments
- Wider promotion in rural areas and among women entrepreneurs
- Simplified application process for faster approvals
These upgrades make it easier for more people to benefit from the scheme.
Conclusion
The Asaan Karobar Finance Scheme is a golden opportunity for small business owners in Punjab to access interest-free loans and grow their businesses without the burden of high banking costs. Whether you’re starting a new business or expanding an existing one, this scheme offers the financial push you need — with full transparency, flexibility, and government support.
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If you meet the criteria, don’t wait. Apply today and take a confident step toward business success.
🔗 Apply Now: https://akf.punjab.gov.pk/landing