About the Program
Table of Contents
This initiative is designed to help small business owners in Punjab grow and sustain their ventures by providing interest-free loans of up to PKR 1 million. The funds are accessed through a digital SME card, ensuring easy, structured, and transparent use through platforms like mobile apps and point-of-sale (POS) systems.
Key Features
- Loan Limit: Up to PKR 1 million
- Loan Duration: 3 years
- Type: Revolving credit facility valid for 12 months
- Repayment Term: 24 equal monthly installments, starting after the first year
- Grace Period: 3 months from card issuance before repayments begin
- Usage Options:
- Payments to vendors and suppliers
- Utility bills, taxes, and government fees
- Limited cash withdrawal (up to 25% of the loan) for business needs
- Digital transactions through POS and mobile apps
- Interest Rate: 0%
Who Can Apply?
To qualify for this scheme, applicants must meet the following criteria:
- Be a small entrepreneur operating in Punjab
- Age: Between 21 and 57 years
- Pakistani national, residing in Punjab
- Have a valid CNIC and a mobile number registered in their name
- Own an existing or planned business in Punjab
- Clear credit and psychometric assessment
- Submit only one application per individual or business
- Maintain a clean credit history with no overdue loans
How to Apply
You can apply online through the PITB portal. Here’s what to know:
- Processing Fee: PKR 500 (non-refundable)
- Digital verification of your CNIC, creditworthiness, and business location will be conducted by authorized agencies.
Loan Usage and Repayment
- First 50% Limit: Available within the first 6 months
- Grace Period: 3 months before repayments begin
- Repayment Plan: After 3 months, borrowers pay at least 5% of the outstanding balance (principal only) as a monthly installment
- Second 50% Limit: Released upon satisfactory usage, timely repayments, and registration with PRA/FBR
- Funds must be used strictly for business purposes. Personal or non-business-related transactions like entertainment or leisure are blocked.
Repayments for the remaining balance after the first year will be made through Equal Monthly Installments (EMIs) over 2 years.
Charges & Fees
- Annual Card Fee: PKR 25,000 + FED, deducted from your approved limit
- Additional Costs: Life assurance, card issuance, and delivery charges are covered by the scheme
- Late Payments: Late fees will apply according to the bank’s policy
Security Measures
- Borrowers will provide a digital personal guarantee.
- Life assurance is included for peace of mind.
- Urban Unit teams will physically verify your business premises within 6 months of loan approval and then conduct annual checks.
Key Conditions
- Funds must be used only for core business activities.
- Registration with PRA/FBR is required within six months of receiving the SME card.
- Only one application is allowed per individual or business.
Additional Support
Need help getting started? Feasibility studies for startups and new businesses are available on the PSIC and BOP websites.
Helpline
For assistance, call 1786.
For more details and updates, visit: https://akc.punjab.gov.pk/cmpunjabfinance
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