Punjab small and medium enterprises planning expansion, manufacturing or machinery purchases can borrow interest-free through Asaan Karobar Finance. Launched on 16 January 2025 alongside the Asaan Karobar Card, the Finance arm targets larger term loans, with the Punjab Small Industries Corporation managing the programme and the Bank of Punjab paying the markup.
Finance differs from the Card arm in size and purpose. Card credit revolves for day-to-day business needs, while Finance gives a fixed term loan for a defined business purpose. Applicants should pick Finance when the need exceeds Card limits or when the purpose involves machinery, expansion or a longer repayment horizon.
Asaan Karobar Finance Loan Terms at a Glance
| Item | Detail |
|---|---|
| Loan range | Rs1,000,000 to Rs30,000,000 |
| Tier 1 | Rs1,000,000 to Rs5,000,000 |
| Tier 2 | Rs5,000,000 to Rs30,000,000 |
| Markup | 0%, government pays markup to Bank of Punjab |
| Maximum term | Up to 5 years |
| Grace period | 3 to 6 months |
| Programme allocation cited in guides | Rs84 billion |
Tier boundaries need a portal check before filing. One report places the Tier 2 start at Rs6,000,000 instead of Rs5,000,000, so applicants near that boundary should confirm the live tier rule on akf.punjab.gov.pk.
Who Can Apply
- Punjab residents with a valid CNIC and NTN.
- Age between 25 and 55 years on the application date.
- Active FBR filer status.
- Clean ECIB credit history with no default.
- Small enterprise annual sales up to Rs150,000,000.
- Medium enterprise annual sales from Rs150,000,000 to Rs800,000,000.
- One application per person or business.
- Collateral generally applies for higher amounts.
Phase II runs underway in 2026, with larger loans reported through special schemes. Details of those special schemes remain partly unpublished, so applicants should treat standard Finance limits above as the confirmed route and confirm any special-scheme terms separately.
How to Apply Online
- Open akf.punjab.gov.pk and register an account.
- Prepare a business plan with the documents the portal lists.
- Submit the application with the Rs500 fee.
- Wait for Punjab Small Industries Corporation and Bank of Punjab appraisal.
Applicants should read the fee schedule on the portal before paying anything. Portal terms prevail over any guide where the two differ, especially on tier boundaries and collateral rules.
Which Businesses Fit Finance
Manufacturing units buying machinery fit Finance, since the loan covers equipment cost over a term up to 5 years. Expansion projects fit Finance as well, with the grace period covering the early months before new capacity generates returns. Larger working capital needs fit Finance when the amount exceeds Card limits.
Business size guides the tier. Smaller enterprises with annual sales up to Rs150,000,000 fit the small-enterprise band, while larger sales fit the medium band up to Rs800,000,000. Applicants should confirm their band on the portal, since band placement affects documents and appraisal depth.
Finance Compared With the Card
Card and Finance serve different needs under one programme. Card credit revolves up to Rs1,000,000 across 3 years, with a 3-month grace period and an age range of 21 to 57 years. Finance gives a fixed term loan from Rs1,000,000 to Rs30,000,000 across up to 5 years, with a grace period of 3 to 6 months and an age range of 25 to 55 years.
Applicants should compare term structure before choosing. Revolving credit suits repeated short-term needs, while a term loan suits a single larger purpose with a fixed repayment schedule. Filer status also separates the two arms, since Finance requires active FBR filer status alongside NTN and clean credit history.
How Appraisal Works
Punjab Small Industries Corporation and Bank of Punjab appraise Finance applications after submission. Business plan quality, sales band, credit history and collateral position all feed appraisal, with collateral generally applying for higher amounts. Applicants should treat appraisal as a full review rather than a formality, since term loans of this size carry deeper checks than smaller revolving credit.
Applicants near the Tier 1 and Tier 2 boundary should confirm the live tier rule before filing, since one report places the Tier 2 start at Rs6,000,000 instead of Rs5,000,000. Band placement affects appraisal depth, so filing in the wrong tier wastes a review cycle.
Frequently asked questions
Rs1,000,000 to Rs30,000,000 stands as the term loan range, split into Tier 1 up to Rs5,000,000 and Tier 2 above that level.
Yes, on programme terms. Markup stands at 0% for the borrower because the government pays the markup to the Bank of Punjab.
Applicants must fall between 25 and 55 years on the application date.
Yes. Active FBR filer status forms part of Finance eligibility, along with a valid NTN and clean ECIB credit history.
Helpline 1786
covers the Finance arm, and akf.punjab.gov.pk lists document requirements before submission.
Business owners comparing both Asaan Karobar arms should start from their actual credit need. Smaller revolving needs fit the Card, while machinery, expansion and larger amounts fit Finance, and both routes run through the same helpline and the same verifying bank.
