Interest-Free Loans for SMEs in Punjab
The Punjab government has launched a special initiative to support Small and Medium Enterprises (SMEs) by offering interest-free loans. This program is designed to promote entrepreneurship, generate employment opportunities, and boost exports by focusing on key business sectors across the province.
Who Can Apply?
The loan scheme is open to:
✅ New Businesses – Get funding to start your entrepreneurial journey.
✅ Existing Businesses – Expand, modernize, or manage working capital.
✅ Leasing for Commercial Logistics – Secure financing for vehicles and equipment.
✅ Eco-Friendly Businesses – Support for sustainable and climate-friendly projects.
Eligibility Criteria
To qualify for the loan, applicants must meet the following conditions:
✔ Small Enterprises (SEs) – Annual sales up to PKR 150 million.
✔ Medium Enterprises (MEs) – Annual sales between PKR 150 million – PKR 800 million.
✔ Age Limit – Applicants should be between 25 to 55 years old.
✔ Active FBR Tax Filers – Must have a clean credit history.
✔ Business & Residency in Punjab – Both must be located within the province.
✔ Valid CNIC & NTN – Required for loan approval.
✔ Ownership or Rental Agreement – Business location must be owned or rented by the applicant.
Loan Categories & Terms
| Tier | Loan Amount | Security Requirement | Tenure (Up to) | Interest Rate | Processing Fee |
|---|---|---|---|---|---|
| T1 | PKR 1M – 5M | Personal Guarantee | 5 Years | 0% | PKR 5,000 |
| T2 | PKR 6M – 30M | Secured Loan | 5 Years | 0% | PKR 10,000 |
Grace Period
- Startups / New Businesses – Up to 6 months.
- Existing Businesses – Up to 3 months.
Equity Contribution
- 0% for Tier 1 (except leased vehicles).
- Leased Vehicles: 25% contribution required.
- All other cases (T1 & T2): 20% equity.
- Special Discount: 10% equity requirement for women, transgender individuals, and differently-abled persons.
Repayment Terms
- Monthly installments as per the approved plan.
- Late Payment Charges: PKR 1 per 1,000/day on overdue amounts.
Additional Costs
- New Business Setup: No handling fee.
- Existing Business Handling Fee: 3% per annum.
- Eco-Friendly Businesses (T2): No handling fee.
- Insurance, Legal & Registration Charges: As per actual costs.
How to Apply?
Interested applicants can submit their applications online through the official Punjab Government SME Loan Portal.
📞 Helpline: 1786
🌐 Website: Visit here
This initiative is a golden opportunity for entrepreneurs looking to scale their businesses with zero-interest financing. Don’t miss your chance to grow your business—apply today!