Punjab SME Support Scheme
The Punjab SME Support Scheme is designed to help small and medium entrepreneurs in Punjab grow their businesses. This initiative provides financial assistance through interest-free loans. It aims to create jobs, boost exports, and strengthen economic development. The program is a joint effort between the Government of Punjab (GoPb) and the Bank of Punjab (BOP), with mark-up subsidy support from PSIC. Priority is given to sectors that add value to Punjab’s business hubs.
Objectives of the Punjab SME Support Scheme
The scheme focuses on supporting new businesses, expanding existing ones, and modernizing operations. Entrepreneurs can access loans for working capital, equipment purchase, or leasing commercial vehicles. It promotes sustainable business growth and targets sectors, including agriculture SMEs, under SBP regulations. Key goals include:
- Generate employment across Punjab
- Boost exports and local manufacturing
- Encourage entrepreneurship among underrepresented groups
The program also helps startups by offering a grace period and reduced equity requirements. Special provisions exist for females, transgender, and differently-abled entrepreneurs.
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Eligibility Criteria
اہل درخواست دہندگان کے لیے لازمی ہے کہ وہ 25 سے 55 سال کی عمر کے پنجاب کے پاکستانی باشندے ہوں۔ کاروبار رجسٹرڈ، فعال ٹیکس فائلرز، اور ان کی صاف کریڈٹ ہسٹری ہونی چاہیے۔ ہر کاروباری بنیاد پر صرف ایک قرض کی اجازت ہے۔ SBP کی طرف سے اہل کاروباری اداروں کی تعریف اس طرح کی گئی ہے:
| Enterprise Type | Annual Sales Limit |
|---|---|
| Small Enterprise | Up to PKR 150M |
| Medium Enterprise | PKR 150M – 800M |
Tier-1 loans are for small enterprises and Tier-2 loans cover small and medium businesses. Sole proprietorships can apply for Tier-1 loans.
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Loan Features and Security
The scheme offers Tier-1 loans from PKR 1M to 5M and Tier-2 loans from PKR 5M to 30M. Tier-1 loans require only personal guarantees. Tier-2 loans need secured property or other approved collateral. Loan tenure is up to 5 years with a grace period for startups. Borrowers must route transactions through BOP accounts. Equity requirements vary: 0% for most Tier-1 loans, 20% for Tier-2, and 10% for women or disabled applicants.
Processing, Repayment, and Charges
Tier-1 loans use digital processing with BOP’s scoring model. Tier-2 loans are approved case-by-case. Monthly repayment is mandatory, starting on the 1st of each month. Late payments incur nominal charges. Handling and processing fees apply: PKR 5,000 for Tier-1 and PKR 10,000 for Tier-2.
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Debt Burden Ratio and Other Provisions
ماہانہ قرض کی ادائیگی ٹائر-1 کے لیے خالص آمدنی کے 40% اور ٹائر-2 کے لیے 50% سے زیادہ نہیں ہونی چاہیے۔ لیز پر لی گئی گاڑیاں اور آب و ہوا کے موافق کاروبار کے لیے خصوصی انتظامات ہیں۔ تمام محفوظ اثاثوں کے لیے انشورنس ضروری ہے۔
FAQs
What is the Punjab SME Support Scheme?
It is a government-backed program offering interest-free loans to small and medium enterprises in Punjab.
Who can apply for the loans?
Eligible entrepreneurs must be Punjab residents, tax-compliant, and meet SBP’s SME criteria.
How much loan can I get?
Tier-1 loans: PKR 1M–5M, Tier-2 loans: PKR 5M–30M.
Where to apply?
Applications are submitted via BOP with require documents, routed through PSIC’s portal.
Link: https://akf.punjab.gov.pk/landing for apply.