CM Punjab Asaan Karobar Card: Empowering Small Entrepreneurs with Interest-Free Business Loans
Introduction
The CM Punjab Asaan Karobar Card is a groundbreaking financial initiative launched under the leadership of Chief Minister Maryam Nawaz Sharif to support and empower small entrepreneurs across Punjab. By offering interest-free business loans of up to PKR 1 million through a digital SME card, this scheme aims to remove financial hurdles and promote self-employment, digitalization, and economic sustainability.
If you’re a budding entrepreneur in Punjab or already running a small business, this scheme can be your gateway to expansion and financial stability.
Key Features of the Asaan Karobar Card
This loan scheme stands out for its transparent, digital-first approach and entrepreneur-friendly structure. Here’s a breakdown of the core features:
💳 Maximum Loan Limit
- Upto PKR 1,000,000 available per applicant.
🕒 Tenure & Terms
- Loan Term: 3 Years
- Credit Facility: Revolving credit valid for 12 months
- Repayment Term: 24 equal monthly installments after the first year
- Grace Period: First 3 months post-card issuance
🔁 Loan Usage
The Asaan Karobar Card facilitates the following types of business-related expenses:
- Payments to vendors and suppliers
- Utility bills, taxes, and government fees
- Cash withdrawal (maximum 25% of total limit)
- Digital payments through POS terminals and mobile app
- Business expansion costs
💰 Interest Rate
- 0% markup (completely interest-free)
Eligibility Criteria
To ensure fair distribution and maximum utility, the government has set transparent and inclusive eligibility requirements:
- Age: 21–57 years
- Nationality: Must be a Pakistani citizen residing in Punjab
- Business Type: Existing or new business within Punjab
- Valid CNIC and registered mobile number
- Clean credit history with no existing overdue loans
- One application per person or business only
- Must pass a credit and psychometric assessment
How to Apply for Asaan Karobar Card?
Applying is simple and fully digital, ensuring accessibility even from remote areas.
📲 Application Process
- Submit Online Application via the official PITB portal:
👉 https://akc.punjab.gov.pk/cmpunjabfinance - Processing Fee:
- Non-refundable PKR 500
- Digital Verification Includes:
- CNIC authentication
- Credit history check
- Business location verification through Urban Unit
- Physical inspection within 6 months of approval
Loan Disbursement & Repayment Schedule
The SME card provides a revolving credit facility, with funds released in two stages based on performance and compliance.
Phase 1: Initial 50% Loan Usage
- Available for business-related activities during the first 6 months
Grace Period
- 3 months after card issuance
- No repayment required during this period
Phase 2: Remaining 50%
- Released after:
- Timely repayments
- Business registration with PRA or FBR
- Satisfactory usage of initial loan
- Ongoing POS or digital transactions
Repayment Terms
- Minimum monthly repayment of 5% of outstanding balance (principal only) after grace period
- Remaining balance payable via EMIs over 2 years
Charges & Fees
Although the scheme is interest-free, some charges apply to support operational and administrative efforts:
| Charge Type | Amount |
|---|---|
| Annual Card Fee | PKR 25,000 + FED (from card limit) |
| Processing Fee | PKR 500 (non-refundable) |
| Late Payment Charges | As per Bank’s Schedule of Charges |
| Life Assurance, Card Issuance & Delivery | Covered by the Government |
Security & Monitoring
To ensure accountability and reduce default risk:
- Personal Guarantee: Required digitally at time of application
- Life Insurance: Included for all approved borrowers
- Physical Verification: Urban Unit conducts inspections within 6 months and annually afterward
- Monitoring: Transactions not related to business (like entertainment or personal use) are automatically blocked
Mandatory Conditions
To prevent misuse and ensure genuine business development:
- Funds must only be used for business-related expenses
- Registration with PRA/FBR is mandatory within 6 months of card issuance
- Applicants can only apply once under this scheme
- Unregistered, unverified, or non-compliant businesses will be disqualified
Support & Guidance for Applicants
The Punjab Government is also offering resources to help you prepare and plan your business better:
- Feasibility Studies: Available on PSIC and BOP websites
- Helpline: Dial 1786 for direct assistance or queries
📍 Why This Scheme is a Game Changer
The CM Punjab Asaan Karobar Card is more than just a loan — it’s a bold step towards digital financial inclusion. Here’s why it matters:
- Promotes micro-entrepreneurship in urban and rural Punjab
- Encourages digital payments and reduces the cash economy
- Offers financial stability to small business owners
- Enables access to growth capital without the burden of interest
- Ensures transparency through digital verification & usage
Final Thoughts
The Asaan Karobar Card reflects the Punjab Government’s commitment to empowering citizens through practical, accessible, and transparent financial support. For aspiring and existing entrepreneurs, this is a golden opportunity to grow their businesses without falling into debt traps.
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