The CM Punjab Assan Karobar Finance Scheme 2026 offers interest-free loans up to PKR 30M for small and medium enterprises. Learn eligibility, loan tiers, security requirements, repayment, equity participation, and application process.
The CM Punjab Assan Karobar Finance Scheme 2026 is a flagship initiative by the Government of Punjab (GoPb) in collaboration with the Bank of Punjab (BOP) and the Punjab Small Industries Corporation (PSIC). It provides interest-free financing to small and medium enterprises (SMEs) to promote entrepreneurship, employment generation, exports, and sustainable economic growth.
This scheme is designed to support new businesses, modernization, expansion, working capital, and logistics leasing.
Purpose of Facility
- Setting up new businesses
- Balancing, modernization & replacement (BMR)
- Expansion of existing businesses
- Working capital financing
- Lease of commercial logistics
Targeted Sectors
All sectors including Agri-SMEs, as per SBP Prudential Regulations.
Key Features of the Scheme
| Feature | Tier-1 (T1) | Tier-2 (T2) |
|---|---|---|
| Loan Amount | PKR 1M – PKR 5M | PKR 5M – PKR 30M |
| Security | Clean – Personal Guarantee(s) | Secured |
| SME Category | Small Enterprises only | Small & Medium Enterprises |
| Processing | End-to-End Digital (BOP scoring model) | Case-to-case basis |
| Repayment | Equal monthly instalments | Equal monthly instalments |
| End-User Rate | 0% | 0% |
| Loan Tenor | Up to 5 years (grace period: 6 months for startups, 3 months for existing businesses) | Up to 5 years |
Security Details
- Tier 1 (T1): Personal Guarantee(s) + Net Worth Statement(s)
- Tier 2 (T2): Mortgage of property or other acceptable security per BOP policy
- Vehicles: For commercial vehicles, the financed vehicle serves as collateral (registered in BOP’s name) + personal guarantee
Equity Participation
- T1 Loans: 0% equity (except leased vehicles)
- Leased Vehicles: Minimum 25% equity upfront
- T2 Loans: 20% equity (10% for females, transgender, and differently abled persons with disability CNIC/certificate)
- CM Punjab Assan Karobar Finance Scheme 2026
Insurance Requirements
- Comprehensive insurance of property, leased assets, or pledged stocks
- Premium paid by borrower
- For leased vehicles: first-year insurance paid at disbursement
Read more; BISP 8171 Web Portal 2026 – CNIC Check & Online Registration Guide
Other Charges
- Valuation, legal, documentation, mortgage registration, repossession, pledge handling, government duties, revenue stamps — payable at actuals
Loan Processing Fee
| Tier | Fee |
|---|---|
| T1 | PKR 5,000 |
| T2 | PKR 10,000 |
Payable upfront in PSIC’s Single Collection Account. 50% shared with BOP.
Handling Fee (GoPb)
| Purpose | Fee |
|---|---|
| Green Field / Startups | Nil |
| Brown Field / BMR (Existing Business) | 3% per annum |
| Climate-Friendly Loans (T2 only) | Nil |
Repayment Rules
- Equal monthly instalments
- Payment due date: 1st of every month
- First instalment based on booking date:
- On/before 15th → 1st of following month
- After 15th → 1st of month after next
Late Payment Charges: PKR 1 per 1000 per day on principal.
Pricing
- 6-month average Ask-side KIBOR + 2.40% p.a.
- KIBOR of last day of preceding month applied.
Eligibility Criteria
- SMEs as defined by SBP:
- Small Enterprise (SE): Annual sales up to PKR 150M
- Medium Enterprise (ME): Annual sales PKR 150M – PKR 800M
- Sole proprietorships eligible for T1 loans
- Registered and active FBR tax filers
- Age: 25–55 years
- Resident Pakistani national (Punjab CNIC)
- Business location: Punjab
- One loan per business premises
- Clean ECIB/credit history
- Valid CNIC & NTN
- Must own/rent business premises
- Debt Burden Ratio (DBR):
- T1: Up to 40% of monthly net income
- T2: Up to 50% of monthly net income
Conclusion
The CM Punjab Assan Karobar Finance Scheme 2026 is a landmark initiative to empower SMEs with interest-free loans up to PKR 30M, transparent digital processing, and sector-wide support. By focusing on startups, modernization, and climate-friendly businesses, Punjab is driving entrepreneurship, employment, and exports while ensuring inclusive access for women, transgender, and differently abled entrepreneurs.
This program is a major step toward building a resilient and competitive SME ecosystem in Punjab.
