Small entrepreneurs in Punjab now have a lifeline to grow their businesses with ease and transparency. The Chief Minister’s Asaan Karobar Card (AKC) is a groundbreaking initiative aimed at providing interest-free loans of up to PKR 1 million to support small enterprises. Designed to ensure structured and transparent fund utilization, the program delivers key financial assistance through digital channels like POS machines and mobile apps.
If you’re a small business owner looking to explore new growth avenues, this blog explains everything you need to know about the program, from its features to the simple application process.
About the Chief Minister’s Asaan Karobar Card Program
The Chief Minister’s Asaan Karobar Card Scheme is a revolutionary initiative offering interest-free loans to small entrepreneurs in Punjab. This program enables businesses to build and sustain themselves by ensuring easy access to funds with streamlined digital processes.
Here’s what sets this program apart:
- The loans are provided via a digital SME card, ensuring direct and appropriate use of funds.
- The usage restrictions and transparent digital channels make sure funds are spent solely on business-related activities such as vendor payments, utility bills, and government fees.
This initiative supports Punjab’s robust entrepreneurial ecosystem by helping small businesses thrive.
Key Features of the AKC Program
Some standout features of the program include:
1. Loan Limit and Tenure
- Maximum Limit: Up to PKR 1 million.
- Tenure: Revolving credit facility for 12 months, with repayment over 2 years.
2. Flexible Repayment Terms
- Grace Period: Start repaying after 3 months of receiving the card.
- Repayment Term: 24 equal monthly installments after the first year.
- Allowed Withdrawal: 25% of the limit can be withdrawn as cash for business-related purposes.
3. Zero Interest Rate
- With a 0% interest rate, entrepreneurs can access necessary funds without the burden of additional costs.
4. Approved Uses
Eligible amounts can be used for:
- Vendor and supplier payments.
- Utility bills, government fees, and taxes.
- Business-related digital transactions via POS or mobile apps.
Eligibility Criteria
To qualify for the AKC, applicants must meet the following conditions:
- Age: 21 to 57 years.
- Residency: Pakistani nationals residing in Punjab.
- Occupation: Existing or prospective entrepreneurs/business owners in Punjab.
- Submit a valid CNIC and a registered mobile number.
- Clean Credit History with no overdue loans.
- Pass a credit and psychometric assessment.
- Only one application per individual or business.
Additionally, applicants must have satisfactory business premises verification conducted digitally by authorized agencies.
How to Apply for the AKC Program
Applying for the Chief Minister’s AKC Program is quick and convenient. Follow these steps to get started:
- Submit Your Application Online:
Apply digitally via the Punjab Information Technology Board (PITB) portal. You’ll need to pay a non-refundable processing fee of PKR 500.
- Verification Process:
Your CNIC, business premises, and creditworthiness will be digitally verified by relevant authorities.
- Approval & Digital SME Card Issuance:
Once approved, you’ll receive your digital SME card, enabling you to access funds efficiently.
Loan Usage and Repayment Guidelines
Here’s how the loan usage and repayment process work:
- First 50% of the Limit: Funds are accessible within the first 6 months.
- Second 50% of the Limit:
- Released only upon timely repayment and registration with PRA (Punjab Revenue Authority) or FBR (Federal Board of Revenue).
- Funds strictly restricted to business-related purposes—non-essential transactions are blocked.
- Repayment:
- Begin repayments 3 months after receiving the card.
- The remaining loan is repaid in 24 equal monthly installments over 2 years.
Important Charges and Fees:
- Annual Card Fee:
PKR 25,000 + FED, deducted from the approved loan amount.
- Additional Costs Covered:
Life assurance, card issuance, and delivery charges are included in the program. Late payment charges apply as per the bank’s policy.
Security Features and Conditions
To ensure seamless fund utilization and repayment, the AKC Program has built-in security measures:
- Personal Guarantee:
Applicants are required to sign a digital personal guarantee.
- Physical Verification of Premises:
Conducted by Urban Unit every 6 months after the funds are approved.
- Mandatory PRA/FBR Registration:
Businesses must register within 6 months of receiving the SME card.
- Restrictions:
Funds are strictly for core business activities, and non-business-related transactions (e.g., entertainment) are blocked.
Additional Support for Applicants
The program also provides value-added support to applicants:
- Feasibility Studies:
Available on PSIC (Punjab Small Industries Corporation) and BoP (Bank of Punjab) websites for startups.
- Helpline:
Need assistance? Dial 1786 for support or visit the official website for the latest updates.
Why Choose the Chief Minister’s AKC Program?
The AKC card isn’t just about providing loans—it’s about fostering a culture of entrepreneurship in Punjab. By offering interest-free loans, transparent processes, and a host of other benefits, the program ensures that small businesses can secure the capital they need without financial strain. Entrepreneurs can focus on growth and innovation rather than worrying about loan repayments.
If you’re eligible and meet all the criteria, this program could be a game-changer for your business.
Final Thoughts
The Chief Minister’s Asaan Karobar Card empowers small entrepreneurs with interest-free loans, helping them scale their businesses with ease. By leveraging a digital ecosystem, the program ensures transparency, accessibility, and exclusive benefits for business owners across Punjab.
Don’t miss this opportunity to take the next step in your entrepreneurial journey. Apply today through the PITB portal and unlock the potential to transform your business.
For more information and updates, visit the official website at https://akc.punjab.gov.pk/cmpunjabfinance.