Overview
This initiative offers interest-free loans to empower Small and Medium Enterprises (SMEs) in Punjab. It aims to drive economic growth by supporting entrepreneurship, job creation and exports by focusing on priority sectors across the province.
Loan Purposes
- New Businesses: Startup funding
- Existing Businesses: Expansion, modernization, or working capital
- Leasing: Commercial logistics
- RECP Technologies: Climate friendly businesses
Eligibility Criteria
- Small Enterprises with annual sales up to PKR 150M
- Medium Enterprises with annual sales > PKR 150M – PKR 800M
- Age: 25-55 years
- Active FBR tax filers with clean credit history
- Residence and business located in Punjab
- Valid CNIC and NTN
- Must own / have rented the place of existing business
Loan Details
| Tier | Amount (PKR) | Security | Tenure (up to) | End-User-Rate | Processing Fee (PKR) |
|---|---|---|---|---|---|
| T1 | 1M-5M | Personal Guarantee | 5 years | 0% | 5,000 |
| T2 | 6M-30M | Secured | 5 years | 0% | 10,000 |
Grace Period:
- Grace period is up to 6 months for start-ups / new businesses and up to 3 months for existing businesses.
Equity Contribution:
- 0 % for T1 other than leased commercial vehicles
- Leased Vehicles: 25%
- Other Loans: 20% in all other cases under T1 & T2
- 10% for females, transgender and differently-abled persons
Repayment Terms:
- Equal monthly installments as per terms of the approval
- Late Charges: PKR 1 per 1000/day on overdue amounts
Additional Costs:
- Handling fee
- NIL for setting-up new business
- 3% p.a for existing businesses
- NIL p.a for climate-friendly businesses in (T2 only)
- Insurance, legal and registration charges apply as per actual costs.
Helpline
- 1786
For more details and latest about the program, visit website: https://akf.punjab.gov.pk/cmpunjabfinance