Assan Karobar Finance Scheme Overview
The Punjab government has introduced the Assan Karobar Finance Scheme, a vital initiative designed to support small and medium enterprises (SMEs). Launched by Chief Minister Maryam Nawaz Sharif, this scheme aims to provide financial assistance to entrepreneurs for starting new businesses, expanding existing ones, and adopting modern technologies.
Benefits for Agricultural SMEs
The scheme offers special advantages to farmers and agricultural SMEs, helping them increase productivity and ease their financial burdens. Loans are available at two levels:
- Tier-1 Loans: Up to Rs 5 million without collateral.
- Tier-2 Loans: Rs 5 to 30 million with required collateral.
Additionally, the scheme introduces the Assan Karobar Card, providing interest-free loans of up to Rs 1 million.
Objectives of the Assan Karobar Finance Scheme
The primary goal of this scheme is to empower entrepreneurs by providing resources for starting and expanding businesses, as well as modernizing operations. This multi-billion-rupee initiative aims to boost job creation and contribute to Punjab’s economic growth.
Special emphasis is placed on agricultural SMEs, enhancing productivity and encouraging the use of modern farming techniques. The scheme alleviates financial stress through interest-free loans, allowing businesses to grow without high-interest pressures.
Loan Structure and Eligibility Criteria
Loan Tiers
- Tier-1 Loan: Up to Rs 5 million, unsecured, no collateral needed.
- Tier-2 Loan: Rs 5 million to Rs 30 million, secured, collateral required.
Eligibility Requirements
To qualify for a loan, applicants must:
- Be between 25 to 55 years old.
- Have a clean credit history with no defaults.
- Own or rent business premises.
Repayment Terms
The loan repayment period can extend up to five years. New businesses (Greenfield category) receive a six-month grace period, while existing businesses (Brownfield category) get a three-month grace period. This flexible structure helps ease the financial burden on entrepreneurs.
Assan Karobar Card
A key feature of the scheme is the Assan Karobar Card, which simplifies the loan process and makes it more accessible for small entrepreneurs. This digital card offers interest-free loans of up to Rs 1 million for business-related expenses. The card supports transactions via digital platforms like mobile apps and point-of-sale systems, ensuring a hassle-free experience.
Additional Incentives for Entrepreneurs
The scheme also provides several additional benefits:
- Capital Subsidy: Up to Rs 5 million for investments in solar equipment or cleaner production technologies.
- Non-Financial Advisory Services: Support for strategic decision-making and business growth.
- Development of Small Industrial Estates: New industrial estates in areas like Sialkot, Gujrat, and Quaidabad offer affordable locations for business expansion.
- Tannery Zone in Sialkot: A dedicated zone to address environmental issues and improve leather export quality.
Affordable plots with long-term leases of up to 30 years are available, making it easier for entrepreneurs to build and grow their businesses.
Future Plans for the Assan Karobar Finance Scheme
Looking ahead, the Punjab government plans to launch Phase II of the scheme in the 2025-26 fiscal year with an expanded budget of 100 billion rupees. This phase aims to support 24,000 SMEs, targeting Rs 379 billion in loan disbursements. By scaling up the program, the government seeks to create a robust business ecosystem that fosters economic development in the region.
Conclusion
The Assan Karobar Finance Scheme is a groundbreaking initiative by the Punjab government, offering crucial financial support to SMEs. With interest-free loans, capital subsidies, and advisory services, the scheme empowers entrepreneurs to start, expand, and modernize their businesses. The Assan Karobar Card and the development of industrial estates provide practical solutions to business challenges.
This initiative is a significant step toward achieving long-term economic growth and stability in Punjab, creating jobs, and boosting exports. If you’re an entrepreneur looking to make an impact in Punjab, the Assan Karobar Finance Scheme is your key to success!