The Government of Punjab has introduced the Asaan Karobar Card Scheme to empower small entrepreneurs by providing interest-free loans. This initiative aims to foster economic growth and support small businesses across the province. To benefit from this scheme, applicants must meet specific eligibility criteria and adhere to certain conditions. Below is a comprehensive overview of the important conditions associated with the Asaan Karobar Card Scheme.
Table of Contents
Eligibility Criteria for the Asaan Karobar Card
To qualify for the Asaan Karobar Card, applicants must fulfill the following requirements:
- Age: Applicants should be between 21 and 57 years old.
- Residency: Must be a Pakistani national residing in Punjab.
- Identification: Possess a valid Computerized National Identity Card (CNIC) and a mobile number registered in the applicant’s name.
- Business Location: The existing or proposed business must be located within Punjab.
- Credit Assessment: Applicants are required to have a satisfactory credit history with no overdue loans and must pass a psychometric assessment.
- Application Limit: Only one application is allowed per individual and business entity.
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Loan Details
The scheme offers the following loan features:
- Maximum Loan Limit: Up to PKR 1 million.
- Loan Tenure: Total duration of 3 years.
- Loan Type: Revolving credit facility available for the first 12 months.
- Repayment Term: 24 equal monthly installments commencing after the initial year.
- Grace Period: A 3-month grace period from the date of card issuance before repayments begin.
Permissible Use of Funds
The loan amount can be utilized for the following business-related purposes:
- Vendor and Supplier Payments: Settling dues with suppliers to ensure smooth business operations.
- Utility Bills: Payment of essential services such as electricity, water, and gas.
- Government Fees and Taxes: Covering mandatory governmental charges and tax obligations.
- Cash Withdrawals: Up to 25% of the loan limit can be withdrawn in cash for miscellaneous business expenses.
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Application Process for the Asaan Karobar Card
Interested entrepreneurs can apply by following these steps:
- Online Registration: Submit an application through the Punjab Information Technology Board (PITB) portal.
- Processing Fee: Pay a non-refundable processing fee of PKR 500.
- Verification: Undergo digital verification of CNIC, creditworthiness, and business premises by authorized agencies.
Repayment Structure
The repayment plan is structured as follows:
- Initial Utilization: The first 50% of the loan limit is available for use within the first 6 months.
- Grace Period: A 3-month period post-card issuance during which no repayments are required.
- Monthly Payments: After the grace period, borrowers must start monthly repayments, with a minimum payment of 5% of the outstanding loan balance.
- Remaining Limit: The remaining 50% of the loan limit is released upon satisfactory usage, regular repayments, and registration with the Punjab Revenue Authority (PRA) or Federal Board of Revenue (FBR).
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Associated Charges
Applicants should be aware of the following fees:
- Annual Card Fee: PKR 25,000 plus Federal Excise Duty (FED), deducted from the approved loan limit.
- Additional Charges: Costs related to life assurance, card issuance, and delivery.
- Late Payment Penalties: Applicable as per the bank’s policy and schedule of charges.
Security and Verification Measures
To ensure the integrity of the scheme, the following measures are in place:
- Personal Guarantee: A digitally signed personal guarantee by the borrower is required.
- Life Assurance: Included to provide security for the loan.
- Business Verification: The Urban Unit will conduct physical verification of the business premises within 6 months of loan approval and annually thereafter.
Check the Importance Conditions Apply for Asaan Karobar Card Scheme
Borrowers must adhere to these essential conditions:
- Fund Utilization: Loan funds must be used exclusively for core business activities; non-business-related transactions are prohibited.
- Mandatory Registration: Borrowers are required to register with the PRA or FBR within six months of card issuance.
- Application Limit: Only one application per individual or business is permitted.
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Conclusion
The Asaan Karobar Card Scheme is a significant initiative by the Government of Punjab to support small entrepreneurs through interest-free loans. By understanding and adhering to the outlined conditions, eligible business owners can effectively leverage this opportunity to grow and sustain their enterprises, contributing to the broader economic development of the region.
FAQs
Who can apply for the Asaan Karobar Card?
Anyone aged 21-57, residing in Punjab, with a valid CNIC and a business.
How much loan can I get?
You can get up to PKR 1 million interest-free.
What is the repayment period?
The loan must be repaid in 24 equal monthly installments after the first year.
Is there a grace period?
Yes, you get a 3-month grace period before repayments start.
Can I withdraw cash from the loan amount?
Yes, up to 25% of the loan can be withdrawn in cash.
Is there any registration required?
Yes, borrowers must register with the Punjab Revenue Authority (PRA) or FBR within six months.
What happens if I don’t repay on time?
Late payment penalties will apply as per the bank’s policy.
Can I apply for this scheme multiple times?
No, only one application per person or business is allowed.
How can I apply?
Applications can be submitted online through the PITB portal.
Is there any application fee?
Yes, a non-refundable processing fee of PKR 500 is required.