If you have ever wanted to start a small shop, grow a home business or buy stock for a workshop but could not find money without paying heavy markup, the Punjab government’s Asaan Karobar programme is worth a close look. It offers interest-free financing to small entrepreneurs in Punjab, one of the most talked-about interest-free business loan schemes in Punjab right now, and it comes in two forms: the Asaan Karobar Card for smaller needs, and Asaan Karobar Finance for bigger businesses.
This guide explains both in plain language: who can apply, how much you can borrow, what it costs, and how the application works. Figures below come from the Punjab government’s published scheme details and from news reports at the time of launch. Rules and fees can change, so check the official portal before you pay anything or submit a form. For more programmes like this, see our latest Punjab government schemes for small business owners.
What is the Asaan Karobar Card?
The Asaan Karobar Card is a digital business card that gives eligible small entrepreneurs a credit limit of up to Rs 1 million at 0% interest. It is not cash in your hand in the usual sense. The limit sits on a card, and you use it for business spending through POS machines or a mobile app. The idea is that the money goes into the business, with a record of where it went.
The government’s aim is straightforward: help people start or expand something small, create jobs, and bring more business activity into the formal system. If you are comparing options, our step-by-step loan and business scheme guides for Punjab residents cover the other programmes.
Key features at a glance
As reported at launch, the card works like this:
| Feature | Details |
|---|---|
| Credit limit | Up to Rs 1,000,000 |
| Interest rate | 0% |
| Tenure | 3 years |
| Revolving period | First year |
| Grace period | 3 months before repayment starts |
| Repayment | 24 equal monthly instalments |
| Cash withdrawal | Up to 25% of the limit, for business use |
| Application fee | Rs 500, non-refundable |
| Annual card fee | Rs 25,000 plus FED, deducted from the approved limit |
| Helpline | 1786 |
The annual card fee is the detail many people miss. Zero interest does not mean zero cost, so read the fee terms before you apply.
How the money can be used
The card is meant for real business expenses. You can pay suppliers, utility bills and taxes through digital transactions. Up to a quarter of your limit can be withdrawn in cash for business needs. Spending that has nothing to do with the business is restricted, so treat it as working capital and not as personal credit.
The loan is also released in stages. According to the reported terms, the first 50% is available within six months, and the remaining 50% comes after you meet usage and registration requirements with the PRA or the FBR. If you are thinking about registering your business anyway, this is a good reason to do it early, and our FBR tax filer and NTN registration updates explain the basics.
Who can apply?
The card is for small entrepreneurs working in Punjab, whether you already run a business or plan to start one. Reported conditions include:
- A valid CNIC and a mobile number registered in your name
- Age within the limits set by the scheme (news reports at launch gave 21 to 57 years, so confirm the current range)
- No overdue loans and a clean credit record
- Passing a psychometric test and digital verification
- One application per person or business
If you already have a defaulted loan or an unpaid bank balance, expect that to count against you. Clear it first if you can. If your CNIC details are outdated, check the latest CNIC and NADRA updates for loan applicants and sort it out with NADRA before you apply.
How to apply, step by step
- Open the official portal. Go to the Punjab government’s Asaan Karobar page (punjab.gov.pk/index.php/asaan-karobar-card) and follow the application link. Applications run through the PITB digital platform.
- Register with your CNIC and mobile number. Use details that match your CNIC exactly. Mismatches are a common reason for delays.
- Fill in your business details. Say clearly what the business is, where it is, and what you will spend the money on. If you are starting new, describe the plan honestly.
- Pay the application fee. The reported fee is Rs 500 and it is not refunded, whatever the outcome.
- Complete the verification and psychometric test. Authorised agencies check your CNIC, business details and creditworthiness.
- Wait for the decision. You will be updated on the status through the portal and by SMS.
- Activate the card and start using it. Keep records of what you spend and why.
For questions at any stage, call the helpline on 1786. If online forms are new to you, our online registration guides for Punjab government programmes walk through the common steps, and the Punjab Information Technology Board (PITB) runs the digital platform.
What about bigger loans? Asaan Karobar Finance
If Rs 1 million is not enough, the Punjab government also runs CM Punjab Asaan Karobar Finance, which offers interest-free loans from Rs 1 million up to Rs 30 million, delivered through the Bank of Punjab. The purposes it covers include startup funding, expansion, modernisation and working capital, as well as leasing of commercial vehicles and climate-friendly business technology.
The official terms published on the Punjab government site list these conditions:
- Small enterprises with annual sales up to Rs 150 million, or medium enterprises with sales above that and up to Rs 800 million
- Age 25 to 55
- Active FBR tax filer with a clean credit history
- Residence and business in Punjab
- Valid CNIC and NTN
- Own or rented premises for an existing business
The loan comes in two tiers:
| Tier | Amount | Security | Tenure | Mark-up | Processing fee |
|---|---|---|---|---|---|
| T1 | Rs 1M to 5M | Personal guarantee | Up to 5 years | 0% | Rs 5,000 |
| T2 | Rs 6M to 30M | Secured | Up to 5 years | 0% | Rs 10,000 |
There is a grace period of up to six months for new businesses and up to three months for existing ones. Equity contribution is generally 20%, with 10% for women, transgender and differently-abled applicants. Late payments attract a charge of Rs 1 per Rs 1,000 per day on the overdue amount. Handling fees, insurance and legal charges apply on top, so ask for the full cost sheet before you sign anything.
The official page for this scheme is akf.punjab.gov.pk/cmpunjabfinance. The launch of both schemes was also reported by Dawn.
Which one is right for you?
A simple way to think about it. If you are a small shopkeeper, home-based worker or first-time entrepreneur who needs up to a million rupees for stock and running costs, the card is the natural fit. If you run an established business with tax filing, a registered NTN and plans to expand or buy equipment, Asaan Karobar Finance is the better route. The two serve different people, so do not apply for one hoping it behaves like the other.
Practical tips before you apply
- Get your paperwork in order first. CNIC, mobile number in your own name, and, for the larger loan, NTN and filer status.
- Check your credit record. Clear anything overdue before you apply.
- Work out your numbers. With a 24-month repayment, you need enough monthly income to cover the instalment even in slow months.
- Count the fees. The application fee, annual card fee and processing fees all change what the loan really costs you.
- Use official channels only. Do not pay agents or “facilitation” fees to anyone. Applications go through the government portal, and the helpline is 1786.
Frequently asked questions
Is the Asaan Karobar Card really interest-free?
Yes, the reported interest rate is 0%. However, fees such as the application fee and annual card fee still apply.
Can I withdraw the whole amount in cash?
No. Reported terms allow cash withdrawal of up to 25% of the limit. The rest is for digital payments to suppliers, bills and taxes.
Can I apply for a new business?
Yes. The card is open to both existing and aspiring entrepreneurs in Punjab. For the larger finance scheme, new businesses are also covered, with a longer grace period.
Can women apply?
Yes. Women can apply to both schemes, and the larger finance scheme asks for a lower equity contribution from women. Punjab has also approved a Rs 500 million interest-free loan scheme for women entrepreneurs and artisans, and our guide to women and youth business programs in Punjab lists others worth checking.
Do I need to be a tax filer?
For Asaan Karobar Finance, yes. For the card, the loan release is linked to registration with the PRA or FBR.
Where do I get help?
Call 1786 or use the official Punjab government pages. Feasibility studies are reported to be available on the websites of the Punjab Small Industries Corporation (PSIC) and the Bank of Punjab.
Final word
An interest-free loan can be the difference between a business that stays an idea and one that opens its doors. The Asaan Karobar programme is a serious option for people in Punjab, but only if you go in with open eyes: know the fees, know your repayment, and use the money for the business it was meant for. Read the latest terms on the official portal, keep your documents ready, and apply only through government channels.
Related reading: Punjab Clean Air Program: latest initiatives and public health measures and Punjab government schemes you can apply for online.
Disclaimer: This article is for general information and is not an official government publication. Eligibility, limits, fees and deadlines can change, so always confirm the latest details on the official Government of Punjab website before applying.
