The CM Punjab Asaan Karobar Finance Scheme, launched under the leadership of Chief Minister Maryam Nawaz, is a flagship Punjab government initiative aimed at empowering small and medium enterprises (SMEs), startups, and entrepreneurs through interest-free business loans and digital financing solutions.
The program is designed to accelerate economic growth, promote entrepreneurship, and create employment opportunities across Punjab by offering easy access to capital through transparent, technology-driven processes.
What Is Asaan Karobar Finance?
Asaan Karobar Finance is a provincial-level financing scheme, administered by the Bank of Punjab (BOP), that provides zero-interest loans to eligible businesses operating within Punjab. The initiative includes both:
-
Asaan Karobar Card (digital financing up to PKR 1 million)
-
Asaan Karobar Finance Scheme (larger loans for expansion and modernization)
The scheme prioritizes transparency, efficiency, and inclusion by leveraging digital platforms and simplified application procedures.
Loan Tiers and Financing Details
Under the CM Punjab Asaan Karobar Finance Scheme, businesses can apply for loans based on their scale and requirements:
Tier 1 (T1)
Loans ranging from PKR 1 million to PKR 5 million are offered against a personal guarantee, with a repayment tenure of up to five years. These loans carry a 0% interest rate and require a minimal processing fee.
Tier 2 (T2)
For medium-scale businesses, loans from PKR 6 million to PKR 30 million are available on a secured basis, also for up to five years at zero interest.
Export-Oriented SMEs
Exporters and larger SMEs can access financing of up to PKR 50 million, subject to security requirements, under the same interest-free structure.
Grace Period and Repayment Terms
Startups and new businesses are offered a grace period of up to six months, while existing businesses may receive up to three months. Repayment is made through equal monthly installments, making cash-flow management easier for entrepreneurs.
Late payments are subject to a nominal penalty, encouraging timely repayment while keeping borrower costs low.
Equity Contribution Requirements
The scheme offers highly flexible equity contribution terms:
-
Zero equity for Tier 1 loans (except leased commercial vehicles)
-
Reduced equity for women, transgender, and differently-abled entrepreneurs
-
Lower contribution requirements for climate-friendly and renewable energy projects
This structure lowers entry barriers and promotes inclusive economic participation.
Additional Costs and Incentives
New businesses are exempt from handling fees, while existing businesses may incur a small annual charge. Climate-friendly projects, particularly under Tier 2, receive fee exemptions, reinforcing Punjab’s commitment to sustainable development.
Insurance, legal, and registration charges apply strictly on an actual-cost basis.
Eligibility Criteria for Punjab Entrepreneurs
To qualify for the CM Punjab Asaan Karobar Finance Scheme, applicants must meet the following conditions:
-
Be a Pakistani national residing in Punjab
-
Operate a business located within Punjab
-
Fall within the prescribed age limit (generally 25–55 years)
-
Be an active tax filer with FBR, holding a valid NTN
-
Maintain a clean credit history with no prior loan defaults
How to Apply for Asaan Karobar Finance
Applications are processed digitally to ensure transparency and efficiency. Entrepreneurs can apply through the official Punjab government portal or Bank of Punjab channels by submitting:
-
Online application form
-
Business registration documents or business plan
-
Proof of income and tax filing
-
Valid CNIC and supporting documentation
Key Sectors and Priority Areas
The scheme strongly supports growth in high-impact sectors such as logistics, renewable energy, climate protection (RECP), manufacturing, and technology-driven businesses. Special incentives are offered to women-led and marginalized entrepreneurs.
Practical Tips to Improve Approval Chances
A strong and realistic business plan is critical, especially for loans above PKR 500,000. Entrepreneurs should ensure tax compliance, maintain accurate documentation, and verify their credit history before applying. Clear financial projections and a defined repayment strategy significantly improve approval prospects.
Why CM Punjab Asaan Karobar Finance Matters
The CM Punjab Asaan Karobar Finance Scheme represents a major step toward building a resilient, inclusive, and innovation-driven economy. By removing interest costs and digitizing access to capital, the program enables entrepreneurs to expand, modernize, and compete—without the burden of conventional financing.
