The Punjab government has unveiled a groundbreaking initiative to provide interest-free loans aimed at bolstering Small and Medium Enterprises (SMEs). This program is designed to address critical business needs such as startups, expansion, modernization, working capital, commercial logistics, and climate-friendly ventures.
Key Features of the Loan Program
The loan scheme is divided into two tiers:
- Tier 1:
- Loan Amount: Rs1 million to Rs5 million
- Guarantee: Personal guarantee required
- Tenure: Up to five years
- Interest Rate: 0%
- Processing Fee: Rs5,000
- Tier 2:
- Loan Amount: Rs6 million to Rs30 million
- Guarantee: Secured collateral required
- Tenure: Up to five years
- Interest Rate: 0%
- Processing Fee: Rs10,000
Repayments for both tiers will be made in equal monthly installments as per approved terms. A late charge of PKR 1 per PKR 1,000 per day will be imposed on overdue amounts.
Eligibility and Application Requirements
Applicants must provide scanned copies or clear images of the following documents:
- Passport-size photo
- CNIC
- Mobile number associated with CNIC
- Proof of active tax filing
- Business income and expense details
- Rent Agreement, Transfer Letter, or Registry for business and residence addresses
For Tier 2 loans, collateral such as a Property Transfer Letter or Government Securities is mandatory.
Application Process
- Account Creation: Applicants must register an account with their mobile number.
- Time Allocation: The process takes approximately 15 minutes.
- Fees: Rs5,000 for Tier 1 and Rs10,000 for Tier 2 (non-refundable).
Upon submission, applicants will receive a registration number and SMS updates regarding their application status. Progress can also be tracked on the program’s official website.
This initiative underscores the government’s commitment to empowering entrepreneurs and fostering sustainable economic growth in Punjab.
