CM Punjab Asaan Karobar Finance Scheme 2026: Interest-Free Business Loans

The CM Punjab Asaan Karobar Finance Scheme is a Punjab Government initiative designed to provide interest-free financing to small and medium-sized businesses across the province.

The programme aims to encourage entrepreneurship, create employment opportunities, support business expansion and promote exports by providing affordable financing to eligible entrepreneurs.

Funding is available for both new and existing businesses, with loan amounts ranging from PKR 1 million to PKR 30 million, depending on the applicable financing tier.

What Is CM Punjab Asaan Karobar Finance?

CM Punjab Asaan Karobar Finance provides interest-free business loans to eligible SMEs operating in Punjab.

The scheme can help entrepreneurs establish new businesses or strengthen existing ventures through financing for expansion, modernization and working capital requirements.

The programme also supports climate-friendly businesses and commercial logistics through specific financing options.

What Can the Loan Be Used For?

Eligible applicants can use financing for several business-related purposes, including:

• Starting a new business: Funding for establishing a new enterprise.
• Business expansion: Financing to increase the scale of an existing business.
• Modernization: Upgrading equipment, facilities or business operations.
• Working capital: Meeting eligible operational and business expenses.
• Commercial vehicle leasing: Financing for commercial logistics.
• RECP technologies: Supporting resource-efficient and environmentally friendly business solutions.

Who Can Apply for the Asaan Karobar Finance Scheme?

The programme is intended for entrepreneurs and SMEs that meet the Punjab Government’s eligibility requirements.

Applicants generally need to fulfil the following conditions:

• The applicant must be between 25 and 55 years old.
• The applicant must be an active FBR tax filer.
• The applicant must have a clean credit history.
• The applicant must have a valid CNIC and NTN.
• Both the applicant’s residence and business must be located in Punjab.
• Owners of existing businesses must own or rent the premises where the business operates.
• The business must fall within the applicable SME sales limits.

Small and Medium Enterprise Limits

The scheme categorizes businesses according to annual sales:

Business Category	Annual Sales
Small Enterprise	Up to PKR 150 million
Medium Enterprise	More than PKR 150 million to PKR 800 million

Asaan Karobar Finance Loan Amounts

The financing programme has two main tiers.

Tier 1 — PKR 1 Million to PKR 5 Million

Applicants can receive financing between PKR 1 million and PKR 5 million.

Key terms include:

• Security: Personal guarantee
• Maximum tenure: Up to 5 years
• End-user rate: 0%
• Processing fee: PKR 5,000

Tier 2 — PKR 6 Million to PKR 30 Million

Tier 2 provides larger financing for eligible businesses.

The main terms include:

• Financing: PKR 6 million to PKR 30 million
• Security: Secured
• Maximum tenure: Up to 5 years
• End-user rate: 0%
• Processing fee: PKR 10,000

Grace Period

The scheme provides a repayment grace period depending on whether the financing is being used for a new or existing business.

• New businesses/start-ups: Up to 6 months
• Existing businesses: Up to 3 months

The exact repayment arrangement is determined according to the approved financing terms.

Equity Contribution Requirements

Applicants may need to contribute a portion of the project cost depending on the type of financing.

For Tier 1 financing, the equity requirement is generally 0%, except in cases involving leased commercial vehicles.

The requirements include:

• Leased commercial vehicles: 25%
• Other financing under Tier 1 and Tier 2: 20%
• Women, transgender and differently-abled applicants: 10%

Applicants should review the applicable terms for their specific financing category before applying.

Repayment of the Loan

Approved financing is repaid through equal monthly instalments according to the terms specified in the financing approval.

A late charge of PKR 1 per PKR 1,000 per day applies to overdue amounts.

Applicants should therefore ensure that monthly instalments are paid on time to avoid additional charges.

Additional Charges

Although the financing carries a 0% end-user rate, certain additional costs may apply.

For example:

• New businesses: No annual handling fee
• Existing businesses: 3% per year handling fee
• Climate-friendly businesses under Tier 2: No annual handling fee

Insurance, legal and registration expenses may also apply according to actual costs.

How Much Can You Borrow?

The amount available depends on the financing tier and the applicant’s eligibility.

The programme offers:

Tier 1: PKR 1 million to PKR 5 million

Tier 2: PKR 6 million to PKR 30 million

This makes the scheme suitable for entrepreneurs seeking relatively small start-up financing as well as established businesses requiring larger amounts for expansion or modernization.

Why the Scheme Matters for Punjab’s Entrepreneurs

Access to affordable financing can be one of the biggest challenges faced by small businesses.

By offering financing at a 0% end-user rate, the Asaan Karobar Finance programme is designed to reduce the financing burden on eligible entrepreneurs.

The Punjab Government expects the initiative to contribute to business development, employment generation, entrepreneurship and export growth across the province.

Asaan Karobar Finance Helpline

For questions about eligibility, financing or the application process, applicants can contact the official helpline:

Helpline: 1786

Because programme conditions and application procedures can change, applicants should check the official Punjab Government programme portal for the latest information before submitting an application.

Official Asaan Karobar Finance Portal

For the latest eligibility requirements, application information and programme updates, visit the official CM Punjab Asaan Karobar Finance portal.