Lahore (Pakistan News business desk) The Punjab government has introduced an initiative to offer interest-free loans under Asaan Karobar Scheme to empower small and medium enterprises (SMEs).
The initiative is designed to meet various business needs, including start-ups, business expansion, innovation, working capital, commercial logistics, and climate-friendly businesses.
The loan program consists of two tiers, with “Tier 1” providing an amount of Rs 1 million to Rs 5 million with a personal guarantee for a period of up to five years at a zero percent interest rate and a processing fee of Rs 5,000.
While “Tier 2” will provide an amount of Rs 6 million to Rs 30 million, but it will require a secured collateral, will also have a period of five years at a zero interest rate and a processing fee of Rs 10,000.
Loans will be repaid in equal monthly installments as per the terms of approval, and late surcharges will be applicable on a daily basis ranging from Rs. 1 to Rs. 1,000 per day.
Application Process
Applicants should have the following documents ready before starting the application, such as passport-sized photographs and scanned copies or clear images of the identity card.
Before starting the application process, ensure that you have the mobile number registered with the identity card, name, copies of the identity card, and mobile numbers of two references (who are not blood relatives).
have proof of active tax filer, business income and expense information, rental agreement, transfer letter or copies of the registry relating to the business and residential addresses, and the payment application fee ready.
Collateral (settlement) can be property transfer letter, registry, individual, or government securities.
Asaan Karobar website
Open the official website , Here is the website of Asaan Karobar Finance https://akf.punjab.gov.pk/landing or click here.
To submit the application, follow these steps:
Create an account to start the application.
Ensure that the mobile number is registered in your name.
Allocate at least 15 minutes to complete the application.
Submit the form.
Upload additional information if required.
The application fee is fixed at 5,000 for Tier 1 and 10,000 for Tier 2, both of which are non-refundable.
After submitting the application, a registration number will be provided on the screen as well as through SMS. Applicants will receive SMS updates about the status of their application and can check it on the designated website given above.