Overview
The scheme offers interest-free loans of up to PKR 1 million through a digital SME card. It supports small entrepreneurs in Punjab to grow and sustain their businesses, ensuring structured through Digital Channels (e.g. Mobile App, POS etc.) and transparent utilization of funds.
Key Features
- Maximum Limit: PKR 1 million
- Tenure of Loan: 03 Years
- Loan Type: Revolving credit facility for 12 months
- Repayment Term: 24 equal monthly installments after the first year
- Grace Period: 3 months from card issuance for repayment commencement
- Usage:
- Vendor and supplier payments
- Utility bills, government fees, and taxes
- Cash withdrawal (up to 25% of the limit) for miscellaneous business purposes
- Digital transactions through POS and mobile app
- End-User Interest Rate: 0%
Eligibility Criteria
- All Small Entrepreneurs (SEs) in Punjab
- Age: 21 to 57 years
- Pakistani National, resident in Punjab
- Valid CNIC and mobile number registered in the applicant’s name
- Existing or prospective business located in Punjab
- Satisfactory credit and psychometric assessment
- Only one application per individual and business
- Clean credit history with no overdue loans
How to Apply?
- Applications submitted digitally via PITB portal.
- Non-refundable processing fee: PKR 500
- Digital verification of CNIC, creditworthiness and business premises conducted by authorized agencies.
Loan Usage and Repayment Details
- First 50% Limit: Available for use within the first 6 months
- Grace Period: 3 months after card issuance
- After 3 months, borrower shall start paying monthly installments, with a minimum monthly payment of 5% of the outstanding loan balance (principal portion only)
- Second 50% Limit: Released upon satisfactory usage, regular repayments and registration with PRA/FBR
- Funds are restricted to business-related purposes. Non-essential transactions (e.g. personal consumption, entertainment) are blocked
- The remaining balance after the first year is repaid over 2 years in Equal Monthly Installments (EMIs)
Charges / Fees:
- Annual Card Fee: PKR 25,000 + FED to be recovered from obligor’s approved limit
- Additional Charges: Life assurance, card issuance and delivery charges covered by the scheme
- In case of late payment of installments, late Payment Charges would be recovered as per Bank’s Policy / Schedule of Charges
Security Details:
- Personal guarantee digitally signed by the borrower
- Life assurance included in the portfolio
- Urban Unit conducts physical verification of business premises within 6 months of loan approval and annually thereafter
Key Conditions:
- Funds usage restricted to core business activities; non-business-related transactions are blocked
- Registration with PRA/FBR is mandatory within six months of card issuance.
- Applications are limited to one per individual/business
Additional Support for Applicant:
- Feasibility Studies: Available on PSIC and BOP websites for startups and new businesses.
Helpline
- 1786
For more details and latest about the program, visit website: https://akc.punjab.gov.pk/cmpunjabfinance
