Please provide the paragraph you would like me to paraphrase. The scheme offers interest-free loans of up to PKR 1 million through a digital SME card It assists small business owners in Punjab in expanding and maintaining their enterprises by providing a structured approach through digital channels such as mobile apps and point-of-sale systems, along with ensuring clear and transparent use of funds.
Applications submitted online through PITB portal.
Non-refundable processing fee: PKR 500
Authorized agencies carry out digital verification of CNIC, creditworthiness, and business locations.
Loan Usage and Repayment Details
First 50% Limit: Accessible for use during the initial six months.
Grace Period: 3 months after card issuance
After three months, the borrower will begin making monthly payments, with a minimum payment of 5% of the remaining loan balance (principal only).
Second 50% Limit: Issued after meeting acceptable usage, consistent repayments, and completing the registration process with PRA/FBR
Funds can only be used for business-related purposes. Transactions that are not essential, such as personal expenses or entertainment, are prohibited.
The outstanding amount after the first year will be paid off in equal monthly installments (EMIs) over the course of two years.
Charges / Fees:
Annual Card Fee: An amount of PKR 25,000 plus FED will be deducted from the obligor’s authorized limit.
Additional Charges: The program includes coverage for life insurance, as well as fees related to card issuance and delivery.
Additional Charges: The program includes coverage for life insurance, as well as fees related to card issuance and delivery.
Security Details:
A digital signature of a personal guarantee provided by the borrower.
Life assurance included in the portfolio
The Urban Unit performs physical inspections of business locations within six months of loan approval and continues to do so on an annual basis thereafter.
Key Conditions:
The use of funds is limited to essential business functions; transactions unrelated to business are prohibited.
Registration with PRA/FBR It is required to be completed within six months of the card being issued.
Each individual or business is permitted to submit only one application.
Application Submission Guidance
Before submitting your application, it’s strongly recommended to review the feasibility studies available on the official websites of Punjab Small Industries Corporation (PSIC) and the Bank of Punjab (BOP). These resources provide essential insights and business planning tools for new startups and emerging enterprises, helping you better align your proposal with the requirements of the CM Punjab Karobar Card scheme.
