CM Punjab Approves Asan Karobar Finance Scheme for Loan in 2025: Complete Details

Asan Karobar Finance Scheme: Empowering Entrepreneurs

The Punjab government has launched a groundbreaking initiative, the Asan Karobar Finance Scheme, to empower small and medium-sized enterprises (SMEs) across the province. Under the leadership of Punjab Chief Minister Maryam Nawaz Sharif, this program aims to provide financial assistance to entrepreneurs in various sectors, including agriculture, manufacturing, and services. The scheme seeks to promote job creation, boost exports, and foster sustainable economic growth.

What is the Asan Karobar Finance Scheme?

The Asan Karobar Finance Scheme is designed to support individuals aiming to start new businesses or expand their existing ones. Through this initiative, eligible applicants can access interest-free or low-interest loans, repayable in easy installments. The scheme will be implemented in two phases, ensuring a wide reach and long-term impact.

This initiative focuses on providing inclusive financial support to entrepreneurs, particularly those in agriculture and small-scale industries, enabling them to adopt modern techniques, enhance productivity, and contribute to the province’s economic development.

Objectives of the Asan Karobar Finance Scheme

The key objectives of this scheme include:

1. Job Creation: Encouraging entrepreneurship to generate employment opportunities across Punjab.
2. Economic Growth: Facilitating business expansion and modernizing operations to boost GDP.
3. Export Enhancement: Supporting SMEs to compete in international markets and increase exports.
4. Agricultural Support: Providing loans for adopting advanced farming techniques, ensuring better productivity.

By offering these benefits, the scheme reduces financial burdens on businesses, allowing them to focus on growth and sustainability.

 

Loan Structure and Eligibility Criteria

The Asan Karobar Finance Scheme offers two types of loans:

• Tier-1 Loan: Loans up to Rs 5 million, unsecured and based on a personal guarantee.
• Tier-2 Loan: Loans ranging from Rs 5 million to Rs 30 million, requiring collateral as security.

Eligibility Criteria:

• Applicants must be aged between 25 and 55 years.
• They should have a clean credit history.
• The business premises can be owned or rented.

Repayment Terms:

• Loans are repayable over a maximum period of 5 years.
• New businesses (Greenfield projects) are granted a 6-month grace period before repayment starts, while existing businesses (Brownfield projects) get a 3-month grace period.

Introduction of the Assan Karobar Card

One of the standout features of this scheme is the Assan Karobar Card, a digital solution to streamline the loan process. Entrepreneurs can access interest-free loans up to Rs 1 million through this card.

Key Features of the Card:

• Strictly for business use to ensure transparency.
• Enables digital transactions via mobile apps and point-of-sale systems.
• Offers a loan tenure of 3 years with a 3-month grace period.

Additional Incentives for Entrepreneurs

The Punjab government has introduced several incentives to make this scheme more appealing:

1. Capital Subsidies: Entrepreneurs investing in solar equipment or environmentally friendly technologies can receive subsidies of up to Rs 5 million.
2. Non-Financial Advisory Services: Businesses can access strategic support to enhance decision-making.
3. Development of Industrial Estates: Areas like Sialkot, Gujrat, and Quaidabad will host new industrial estates, providing affordable spaces for businesses.
4. Tannery Zone in Sialkot: A dedicated zone will help reduce water pollution and improve the quality of leather exports.
5. Affordable Plots: Entrepreneurs can acquire plots on long-term leases, spanning up to 30 years.

Future Plans for the Scheme

The Punjab government’s vision includes scaling up the Asan Karobar Finance Scheme in the coming years. Phase II, set to launch in the 2025-26 fiscal year, will have an expanded budget of Rs 100 billion, targeting 24,000 SMEs and disbursing loans worth Rs 379 billion. This phase aims to establish a robust ecosystem for SMEs to thrive and contribute to the province’s economic stability.

Conclusion

The Asan Karobar Finance Scheme is a transformative initiative that addresses financial barriers faced by SMEs in Punjab. By providing interest-free loans, innovative solutions like the Assan Karobar Card, and additional incentives, the program empowers entrepreneurs to turn their ideas into successful ventures. Moreover, the development of industrial estates and dedicated zones like the tannery zone in Sialkot highlights the government’s commitment to fostering sustainable economic growth.