Punjab Chief Minister Maryam Nawaz Sharif has approved the Asan Karobar Finance Scheme, a major initiative aimed at promoting economic growth and supporting small and medium enterprises (SMEs) in Punjab. This multi billion-rupee scheme will provide financial assistance to entrepreneurs across various sectors, including agriculture, with a focus on creating jobs, boosting exports, and driving economic development.
Table of Contents
| Feature | Details |
| Total Budget | Multi Billion-rupee initiative |
| Loan Tiers | Tier-1: Up to Rs5M, Tier-2: Up to Rs30M |
| Target Beneficiaries | SMEs and agricultural businesses |
| Loan Type | Interest-free loans |
Objective of the Asan Karobar Finance Scheme
The Assan Karobar Finance Scheme is designed to empower entrepreneurs by providing them with the necessary resources to establish new businesses, expand existing ones, and modernize their operations. The initiative focuses on creating opportunities for job creation, enhancing exports, and promoting sustainable economic growth in Punjab. By offering interest-free loans and other support, the scheme ensures that businesses can thrive without the burden of high financial costs.
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This program also aims to address the needs of agricultural SMEs, helping them improve productivity and adopt modern techniques. With its comprehensive approach, the scheme is a key step toward fostering long-term economic stability in the province.
Loan Structure and Eligibility
The scheme offers loans under two tiers based on the amount.
● Tier-1 loans provide up to Rs 5 million, requiring only personal guarantees.
● Tier-2 loans range from Rs 5 million to Rs 30 million, which are secured loans.
To qualify, applicants must:
● Be aged between 25 and 55 years.
● Have a clean credit history.
● Own or rent a business premises.
Repayments can be made over a period of up to five years. For new businesses (Greenfield), a six-month grace period is allowed, while existing businesses (Brownfield) receive a three-month grace period.
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Introduction of the Assan Karobar Card
The Punjab government has also introduced the Assan Karobar Card, a digital tool to provide small entrepreneurs with interest-free loans of up to Rs1 million. This card is designed to ensure transparency and accountability by allowing funds to be used exclusively for business purposes.
The card supports transactions through digital platforms such as mobile apps and point-of-sale systems, making it easier for businesses to access and utilize the funds. The loans offered through this card come with a three-year tenure and a grace period of three months.
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Additional Incentives
To further support entrepreneurs, the scheme offers several additional benefits:
● A capital subsidy of up to Rs 5 million for adopting solar equipment and cleaner production technologies.
● Non-financial advisory services to guide businesses in strategic decision-making.
● Development of small industrial estates in areas such as Sialkot, Gujrat, and Quaidabad.
The initiative also includes a dedicated Tannery Zone in Sialkot, aimed at relocating tanneries to reduce water pollution and improve the quality of leather exports. Entrepreneurs in these areas will receive affordable plots with long-term leases of up to 30 years, enabling them to establish and expand their businesses.
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Future Plans
The government plans to launch Phase-II of the scheme in the next fiscal year (2025-26), with an expanded budget of Rs100 billion. This phase aims to accommodate 24,000 SMEs and disburse loans worth Rs379 billion. By scaling up the program, the government hopes to create a robust ecosystem for businesses to flourish, contributing to the province’s overall economic development.
Conclusion
The Assan Karobar Finance Scheme is a transformative initiative by the Punjab government to uplift small and medium enterprises. With its focus on interest-free loans, modern infrastructure, and additional incentives, the program aims to empower entrepreneurs and foster sustainable growth. By creating opportunities for economic development, the scheme sets the foundation for a prosperous future in Punjab.
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FAQs
How can businesses apply for the Assan Karobar Finance Scheme?
Applicants can apply through designated government offices or online portals by submitting the required documents and meeting eligibility criteria.
What is the Assan Karobar Card?
It is a digital card that offers interest-free loans up to Rs1 million for small entrepreneurs to support business-related expenses.
Are agricultural businesses eligible for this scheme?
Yes, agricultural SMEs are eligible and can access loans for improving productivity and adopting modern practices.
What additional benefits does the scheme offer?
Entrepreneurs receive subsidies for solar equipment, advisory services, and access to industrial estates with affordable plots.