The CM Punjab Asaan Karobar Card is a groundbreaking initiative by the Government of Punjab to support the growth and sustainability of small businesses throughout the province. This scheme offers a unique financial solution through interest-free loans of up to PKR 1 million, utilizing a digital SME card to facilitate structured and transparent fund utilization.
About the Program
This innovative program aims to assist small entrepreneurs in Punjab by providing them with the financial backing they need to expand and maintain their business operations. The loans are managed through digital channels such as mobile apps and Point of Sale (POS) systems, ensuring ease of access and use.
Key Features of the CM Punjab Asaan Karobar Card
- Maximum Loan Limit: PKR 1 million
- Loan Tenure: 3 years
- Loan Type: Revolving credit facility for 12 months
- Repayment Term: 24 equal monthly installments, starting after the first year
- Grace Period: 3 months from card issuance to start repayment
- Usage of the Loan:
- Payments to vendors and suppliers
- Payment of utility bills, government fees, and taxes
- Cash withdrawals (up to 25% of the limit) for miscellaneous business needs
- Digital transactions via POS and mobile apps
- End-User Interest Rate: 0%
Eligibility Criteria
- All small entrepreneurs based in Punjab
- Age between 21 to 57 years
- Pakistani national, residing in Punjab
- Must have a valid CNIC and a mobile number registered in their name
- Business must be located in Punjab
- Applicants must have a satisfactory credit and psychometric assessment
- Only one application per individual and business
- Applicants must have a clean credit history with no overdue loans
How to Apply
- Applications must be submitted digitally via the PITB portal.
- A non-refundable processing fee of PKR 500 is required.
- Digital verification of CNIC, creditworthiness, and business premises is conducted by authorized agencies.
Steps to Register for the Assan Karobar Program:
- Applicant’s Name as per CNIC: Enter the name of the applicant as it appears on the CNIC (Computerized National Identity Card).
- Applicant’s Father/Husband Name: Fill in the father’s or husband’s name of the applicant as required.
- Applicant’s CNIC No.: Input the CNIC number of the applicant.
- Date of Birth (As per CNIC): Enter the date of birth according to the CNIC.
- CNIC Issuance Date: Specify the issuance date of the CNIC.
- CNIC Expiry Date: Enter the expiry date of the CNIC.
- Network: Choose the mobile network provider from the dropdown menu.
- Code: This field will be automatically populated based on the network selection or may require a selection.
- Cell No.: Enter the mobile phone number of the applicant.
- Password: Create a password for the account.
- Confirm Password: Re-enter the password to confirm it.
Additional Information:
- Fields marked with an asterisk (*) are mandatory. The form data will not be saved without these fields being correctly filled.
- There is an instruction at the top indicating that all mandatory fields are essential for saving the data.
- A message in red under the password fields indicates a mismatch between the entered passwords. Make sure both passwords match to proceed.
Final Step:
- Register: After ensuring all information is correctly filled and the passwords match, click the “Register” button to submit the application.
Make sure all provided information matches the official documents to avoid any issues during the verification process.
Loan Usage and Repayment Details
- First 50% of Limit: Available within the first 6 months
- Grace Period: 3 months post-card issuance
- Repayment: Begins after the 3-month grace period with a minimum monthly payment of 5% of the outstanding loan balance
- Second 50% of Limit: Released upon satisfactory usage, regular repayments, and registration with PRA/FBR
Charges and Fees
- Annual Card Fee: PKR 25,000 + FED, recovered from the obligor’s approved limit
- Additional Charges: Includes life assurance, card issuance, and delivery charges
- Late Payment Charges: Applicable as per the Bank’s policy/schedule of charges
Security and Verification
- A personal guarantee digitally signed by the borrower
- Life assurance included
- Urban Unit conducts physical verification of business premises within 6 months of loan approval and annually thereafter
Key Conditions
- Funds must be used for core business activities only; non-business-related transactions are blocked.
- Mandatory registration with PRA/FBR within six months of card issuance.
- Applications are limited to one per individual/business.
Additional Support for Applicants
Feasibility studies for startups and new businesses are available on the PSIC and BOP websites, offering crucial support for planning and launching successful ventures.
FAQs
Q1: Who can apply for the CM Punjab Karobar Card?
A1: Any small entrepreneur aged between 21 to 57 years, residing in Punjab with a valid CNIC and mobile number, can apply.
Q2: What is the interest rate for the loans under this scheme?
A2: The loans are provided at a 0% interest rate, making them extremely beneficial for small business owners.
Q3: How long do I have to repay the loan?
A3: The repayment period is over 2 years after the first year’s grace period, with 24 equal monthly installments.
Q4: Can I withdraw cash using the Karobar Card?
A4: Yes, cash withdrawals are allowed but limited to 25% of the total loan limit for miscellaneous business purposes.
Q5: What are the charges associated with the Karobar Card?
A5: There is an annual card fee of PKR 25,000 plus FED and additional charges for life assurance and card issuance and delivery.
The CM Punjab Karobar Card is a significant step towards financial empowerment of small business owners in Punjab, encouraging economic growth and entrepreneurial success in the region.
