Punjab’s government has introduced several financial initiatives to support small and medium enterprises (SMEs). Among these, the Asaan Karobar Card and Asaan Karobar Finance stand out as two popular programs aimed at empowering entrepreneurs. While both initiatives offer financial assistance, they cater to different business needs and have distinct features. This article explores the key differences between the two schemes to help entrepreneurs choose the right option for their business.
Table of Contents
Introduction to Asaan Karobar Card
The Asaan Karobar Card is a digital SME card designed to provide interest-free loans to small entrepreneurs in Punjab. It simplifies access to business funds, enabling entrepreneurs to focus on growing and sustaining their businesses. This program uses digital platforms like mobile apps and point-of-sale (POS) systems for secure and transparent fund usage.
Read More: Asaan Karobar Card Scheme Launched
Key Features:
- Loan Amount: Up to PKR 1 million.
- Interest Rate: 0% (completely interest-free).
- Tenure: 3 years.
- Purpose: Supports vendor payments, utility bills, and operational costs.
| Feature | Asaan Karobar Card | Asaan Karobar Finance |
|---|---|---|
| Loan Amount | Up to PKR 1 million | PKR 1 million to PKR 30 million |
| Interest Rate | 0% | 0% |
| Loan Tenure | 3 years | 5 years |
| Primary Audience | Small entrepreneurs and startups | Medium and large-scale enterprises |
Introduction to Asaan Karobar Finance
The Asaan Karobar Finance scheme is a broader initiative aimed at providing larger financial support to medium and large-scale businesses. This program allows businesses to access loans ranging from PKR 1 million to PKR 30 million, promoting expansion, modernization, and export-oriented projects.
Key Features:
- Loan Amount: PKR 1 million to PKR 30 million.
- Interest Rate: 0%.
- Tenure: 5 years.
- Purpose: Supports business expansion, equipment purchase, and export ventures.
Eligibility Criteria: A Comparison
Asaan Karobar Card Eligibility
- Applicants must be residents of Punjab.
- Age range: 21 to 57 years.
- Must have a valid CNIC and registered mobile number.
- Business should be located in Punjab.
- Clean credit history and successful psychometric assessment required.
Asaan Karobar Finance Eligibility
- Medium and large-scale businesses with annual sales ranging from PKR 150 million to PKR 800 million.
- Business registration with the Federal Board of Revenue (FBR) and Provincial Revenue Authorities.
- Applicants must have a valid CNIC, NTN, and clean credit history.
- Must own or rent a business premise in Punjab.
Read More: Punjab Asaan Karobar Card Fee Payment
Loan Amount and Usage
The Asaan Karobar Card is specifically designed for small entrepreneurs and startups. The maximum loan amount is PKR 1 million, which can be used for:
- Vendor payments.
- Utility bills and government taxes.
- Digital transactions and minor operational costs.
In contrast, the Asaan Karobar Finance caters to medium and large-scale enterprises. Loan amounts range from PKR 1 million to PKR 30 million, with funds allocated for:
- Business expansion and modernization.
- Equipment purchases.
- Export-oriented projects.
Disbursement Process
Asaan Karobar Card Disbursement
The loan amount is disbursed in two phases:
- First 50%: Available within the first six months.
- Second 50%: Released upon successful usage and timely repayment of the first half.
A three-month grace period is offered before repayments begin.
Asaan Karobar Finance Disbursement
Larger loans under this scheme are disbursed based on project milestones. Borrowers enjoy a grace period of up to six months for startups and three months for existing businesses.
Repayment Terms
Asaan Karobar Card
- Tenure: 3 years.
- Repayment: Equal monthly installments.
- Grace Period: 3 months from card issuance.
Asaan Karobar Finance
- Tenure: 5 years.
- Repayment: Equal monthly installments.
- Grace Period: Up to 6 months for startups.
Which Program is Right for You?
The choice between the Asaan Karobar Card and Asaan Karobar Finance depends on the scale and needs of your business:
- Choose Asaan Karobar Card if:
- You are a small entrepreneur or startup.
- You need up to PKR 1 million for operational costs or minor expenses.
- You prefer a quick, digital loan process.
- Choose Asaan Karobar Finance if:
- You run a medium or large-scale enterprise.
- You require funding for expansion or export-oriented projects.
- You need a higher loan amount with a longer repayment tenure.
Read More: Get the CM Punjab Karobar Card
Conclusion
Both the Asaan Karobar Card and Asaan Karobar Finance are exceptional programs that cater to different entrepreneurial needs. While the Asaan Karobar Card focuses on providing accessible financial support for small businesses, the Asaan Karobar Finance scheme empowers larger enterprises with substantial funding. By understanding the differences, entrepreneurs can make informed decisions to grow their businesses and contribute to Punjab’s economic development.
For more information, visit the official website akc.punjab.gov.pk or contact the helpline at 1786.
FAQs
1. Can I apply for both Asaan Karobar Card and Asaan Karobar Finance?
No, applicants can only apply for one program based on their business scale and eligibility.
2. What happens if I miss a repayment?
Missed repayments may result in penalties or cancellation of the loan benefits.
3. Is the loan disbursement process different for both programs?
Yes, the Asaan Karobar Card disburses loans in two phases, while the Asaan Karobar Finance scheme releases funds based on project milestones.
4. Are there any restrictions on how the loans can be used?
Yes, both programs require funds to be used for business-related purposes only.
5. How long does it take to process the application?
Applications for the Asaan Karobar Card are typically processed within weeks, while the timeline for Asaan Karobar Finance depends on project evaluation and approvals.