Asaan Karobar loan scheme eligibility, application process: A complete guide

The CM Punjab Asaan Karobar Loan Scheme, launched under the leadership of Chief Minister Maryam Nawaz Sharif, has emerged as one of the province’s most significant initiatives to support small and medium-sized enterprises (SMEs) and startups.

Aimed at boosting entrepreneurship, creating jobs, and strengthening economic growth, the program provides interest-free loans to aspiring and existing business owners.

It particularly focuses on women, youth, rural entrepreneurs, and marginalized groups, ensuring that no capable business idea fails due to lack of financial support.

What the Scheme Offers

The scheme, also known as the Asaan Karobar Finance Scheme, provides zero-interest loans under two main tiers, along with an exclusive Asaan Karobar Card:

Tier-1: Unsecured loans up to PKR 5 million, requiring only a personal guarantee.

Tier-2: Secured loans ranging from PKR 6 million to PKR 30 million, backed by collateral.

Asaan Karobar Card: Offers quick access to loans up to PKR 1 million without collateral.

Eligibility Criteria

To apply, applicants must:

Be a resident of Punjab with a valid CNIC.

Be 25–55 years of age.

For existing businesses, hold proper registration and show operational history.

Maintain a clean credit history.

Present a feasible business plan or expansion proposal.

Preferably belong to priority groups such as women, youth, differently-abled persons, or rural entrepreneurs.

Application Process

Applying for the scheme involves a few simple steps:

Select the loan tier based on financing needs and collateral availability.

Prepare documents, including CNIC, business plan, financial statements (for existing businesses), collateral proof (for Tier-2), and passport-size photographs.

Pay the processing fee:

PKR 5,000 for Tier-1

PKR 10,000 for Tier-2

Wait for loan approval. Once cleared, the amount is transferred directly into the applicant’s bank account.

Loan Structure Overview

Loan Tier	Loan Amount	Collateral Requirement	Processing Fee	Tenure	Grace Period
Tier-1	Up to PKR 5 million	No (personal guarantee)	PKR 5,000	Up to 5 years	6 months (new) / 3 months (existing)
Tier-2	PKR 6–30 million	Yes (collateral)	PKR 10,000	Up to 5 years	6 months (new) / 3 months (existing)
Asaan Karobar Card	Up to PKR 1 million	No	N/A	Flexible	Immediate access