Announcing bureaucratic reforms for SMEs, the Punjab Chief Minister Maryam Nawaz has approved the Asaan Karobar Finance Scheme for formal employment. The plan was announced at the same time as the approval of the Punjab Hindu Marriage Act Registration Rules 2024 and will be of great help for the further development of young entrepreneurs in the province.
What is the Asaan Karobar Finance Scheme?
Asaan Karobar Finance scheme which has been launched to provide cash facilities at Zero Markup Rate to people and small business units under the drive of the government of Pakistan. This scheme aims at promoting business activities, creating poverty income-generating assets, and completing financial solutions for the excluded sections and unemployment up to Rs. Rs 300 million.
The scheme is designed for those who need funds to start or develop their business and who may have limited funding. It focuses on equality, catering to business women, the young, and minorities as well as, providing equal chances to access all the resources and prospects.
Key Features of the Scheme
- Interest-Free Loans: Loans go up to Rs30 million with no interest illustrated making it one of the most attractive schemes for anyone or any business that wants to expand without a lot of debt stress.
- Eligibility Criteria: The target population to be considered for the study is the residents of Punjab who are over 18 years old.
- Flexible Repayment Period: It will also be flexible and convenient for beneficiaries to repay the amount borrowed with the agreed repayment plan.
- Technical Support: Other core services include free business management training and free business advice to assist the managers in running the business organizations more efficiently and in the expansion of the ventures.
- Employment Creation: Through the fostering of new enterprises the scheme will create many employment vacancies which will help eradicate unemployment in the region.
- Sector Focus: Although available for all industries, the scheme favors investment in technology, manufacturing, agriculture, and services industries.
Objectives of the Scheme
The Asaan Karobar Finance Scheme is aligned with Punjab’s broader economic objectives. It aims to:
- Promote Entrepreneurship: To achieve this, the government aims at both eliminating cost constraints in carrying out business ventures and inspiring more creative talents.
- Reduce Poverty: The economic enfranchisement of people is one way of eradicating poverty as a result of improving their standard of living.
- Enhance Women’s Participation: The most focus is given to women Entrepreneurs to eradicate the problem of the skewed gender divide in the sector.
- Foster Economic Stability: This scheme serves the purpose of sustainable economic development since it supports small businesses to become sustainable too.
How to Apply?
Interested applicants can follow these steps:
- Online Registration: Log in to the official website of the Punjab government and complete the application as per the Punjab Government standard format.
- Document Submission: Some of the documents should be uploaded, including; ID proof, residence proof, and a business plan with all the details.
- Evaluation Process: Funding application shall be granted considering the feasibility and the social-economic returns on investment.
- Loan Disbursement: Grants will be disbursed through identified financial institutions among successful applicants.
