Starting or expanding a business in Pakistan is incredibly difficult, especially for women who often lack the property papers required by traditional banks for collateral. To bridge this gap, the Punjab Government, in collaboration with the Bank of Punjab (BOP), has launched the CM Punjab Asaan Karobar Finance Scheme. While the scheme is open to everyone, it contains specific, massive relaxations designed exclusively for female entrepreneurs.
Here is exactly how women can leverage this scheme to secure up to Rs. 5 Million without paying a single rupee in interest.
1. Punjab Asaan Karobar Finance Scheme – The Offer: Tier-1 (Interest-Free)
The scheme is divided into tiers, but Tier-1 is the most attractive for small-to-medium enterprises.
- Loan Amount: Rs. 1 Million to Rs. 5 Million.
- The Markup: 0% (Interest-Free). The Government of Punjab pays the entire markup to the bank on your behalf.
- Repayment: Up to 5 years (with a 6-month grace period for new startups).
2. The “Female Advantage” (Equity & Security)
This is where the scheme becomes a game-changer for women.
- No Property Required (Tier 1): For the Tier-1 loan (up to Rs. 5 Million), the bank requires a “Clean Loan” structure. You only need a Personal Guarantee and a net worth statement. You do not need to mortgage a house or commercial property.
- The Equity Relaxation (Tier 2): If you apply for a bigger loan (Tier 2: Rs. 5 Million to 30 Million), you have to invest your own money (equity) alongside the bank’s money.
- Standard Requirement: Men must put up 20% equity.
- Female Requirement: Women only have to put up 10% equity (a 90:10 ratio). This instantly halves the financial burden required to start a large-scale project.
3. Eligibility Criteria for Women
To qualify, you must meet the following baseline requirements:
- Age: 25 to 55 years old.
- Residency: Must be a resident of Punjab with a valid CNIC.
- Tax Status: You must have a valid NTN and be an active taxpayer with the FBR.
- Business Proof: You must own or have rented the place of business in your name.
4. How to Apply Online
There is no need to visit government offices or pay “agents.”
- Go to the official portal: akf.punjab.gov.pk
- Register with your CNIC and phone number.
- Select “Tier 1” if you want the 0% markup loan.
- Upload your NTN, Business Proof (Rent agreement/Letterhead), and a basic business plan showing how the funds will be used for expansion or working capital.
Verdict
If you run a boutique, a salon, a small IT setup, or any SME in Punjab, this is the cheapest capital you will ever find. The 0% interest rate and the lack of hard collateral for Tier-1 make this the perfect launchpad for female-led businesses.
Have you applied for the Asaan Karobar Finance yet? Let us know your experience in the comments!