The Punjab government has introduced the Karobar Card Loan Scheme as a new program to help the province’s small and medium-sized enterprises. Interest-free loans between Rs. 100,000 and Rs. 3 million are available under the initiative. These loans are intended to support company owners in expanding their enterprises, generating employment, and advancing Punjab’s economy. The program’s objectives are to boost the economy overall, empower local companies, and lower unemployment.
This program was launched by the Punjab Chief Minister and other officials to encourage business activity, particularly in the wake of the financial difficulties small business owners have been facing. This program is a big step toward letting business owners grow without having to worry about taking out high-interest loans. The government has simplified the process to make it more accessible to business owners who need financial assistance to move forward.
| Feature | Details |
| Loan Amount | Rs. 100,000 to Rs. 3 million |
| Interest Rate | Interest-free |
| Target Audience | Small and medium business owners |
| Application Process | Online portal (launching soon) |
Also Read: Registration Process of Kisan Card Is Going On Across Punjab
Table of Contents
Application Process for the Karobar Card Loan Scheme
The application process for the Karobar Card Loan Scheme is designed to be simple and easy to follow:
- Visit the Official Portal: First, go to the Punjab Small Industries Corporation (PSIC) website at rozgar.psic.punjab.gov.pk/rozgar/register.
- Complete the Application Form: Fill in the necessary details about your business, such as its name, type, and size.
- Upload Required Documents: Attach documents like proof of business registration and a business plan explaining how the loan will be used.
- Submit Your Application: After providing all the required information and documents, submit your application. Once reviewed, eligible candidates will be notified about the loan approval status.
By following these simple steps, you can apply for the Karobar Card Loan and potentially secure the financial support your business needs.
Documents Required for the Karobar Card Loan
When applying for the Karobar Card Loan, you will need to submit several important documents to complete the application process. These documents help verify your business and financial standing, ensuring the loan is provided to eligible applicants:
- CNIC: A valid Computerized National Identity Card (CNIC) of the applicant.
- Proof of Residence: Utility bills, rent agreements, or domicile to confirm Punjab residency.
- Registration: Proof of business registration in Punjab in 2025.
- Business Plan: A detailed plan showing how the loan will be used and the business goals.
- Bank Statements: The last 6 months’ bank transaction history.
- Income Proof: Evidence of the applicant’s existing income or revenue streams.
These documents are essential for verifying your eligibility and ensuring that the loan is used as intended.
Eligibility Criteria for the Karobar Loan Scheme
To qualify for the Karobar Card Loan Scheme, applicants must meet certain eligibility requirements. These criteria ensure that only legitimate businesses can apply for financial assistance. Here’s what you need to know:
- Residency: You must be a citizen of Punjab.
- Business Type: The business for which the loan is being applied must be officially registered in Punjab.
- Loan Amount: Small businesses can receive loans from Rs. 100,000 to Rs. 1 million, while medium-sized businesses can apply for loans up to Rs. 3 million.
- Business Restrictions: Certain business types, like restaurants, may be excluded from the scheme.
Meeting these eligibility criteria is crucial to receiving the loan.
Terms and Conditions of the Karobar Loan Scheme
The Karobar Card Loan Scheme comes with specific terms and conditions that applicants need to follow. These conditions ensure that the loans are used properly and that businesses can repay them within the specified time frame:
- Repayment: Loans must be repaid within a period of five years through easy monthly installments.
- Interest-Free: The loan is completely interest-free, making it easier for businesses to repay without the burden of high interest.
- Priority: The Chief Minister Asan Karobar Financing Scheme offers higher loans for medium-sized businesses, with a focus on IT startups.
These terms are designed to make the loan process manageable and sustainable for small business owners.
Conclusion
The Karobar Card Loan Scheme is a significant initiative by the Punjab government to support small and medium-sized businesses. By offering interest-free loans ranging from Rs. 100,000 to Rs. 3 million, this scheme provides entrepreneurs with the financial resources they need to expand their operations, create jobs, and contribute to the province’s economic growth. With simple eligibility criteria and a straightforward application process, this program is an excellent opportunity for businesses to grow without the pressure of high-interest loans. Stay updated on the application process and make sure to apply as soon as the portal is live.
You may also read: CM Punjab Free Solar Panel Scheme Application Procedure 2025 (Complete Guide)
FAQs
Is collateral required to secure the loan?
No, the loan is interest-free and does not require collateral.
Can I apply if I am a new business owner?
Yes, new businesses are eligible to apply for the Karobar Card Loan Scheme if they meet the criteria and have the necessary documentation.
How long does it take to receive the loan after approval?
The loan processing time may vary, but once approved, the loan will be disbursed promptly.
What type of businesses can apply for the loan?
Small and medium-sized businesses that are registered in Punjab and meet the eligibility criteria can apply for the loan.