Purpose
- The scheme is designed to support small and medium entrepreneurs in Punjab by providing financial assistance to help them establish and grow their businesses. This initiative aims to promote employment generation, boost exports and drive economic development across the province through interest-free financing.
- Setting-up new business, BMR (balancing, modernization & replacement), expansion of existing business, working capital, RECP technologies and lease of commercial logistics.
Eligibility Criteria:
- Age between 25 and 55 years on the date of loan application.
- Must have a clean ECIB / credit history.
- Must have a valid CNIC as per NADRA record.
- Must have a valid NTN.
- Must own / have rented the place of business / premises in applicant’s / partner’s / director’s / business’ name in case of Working Capital, Expansion, and BMR loans.
Loan Limit:
Tier-1: Rs. 1–5 Million, clean loan with personal guarantees.
Tier-2: Rs. 5–30 million, secured loan
Repayment:
Equal monthly installments over up to 5 years including grace period of 06 months for new businesses (Green Field) and 03 months for existing business (Brown Field)
Target Sectors:
All Sectors including Agri-SMEs as per SBP Prudential Regulations
Processing Fee:
For Tier-1: Rs. 5,000/-
For Tier-2: Rs. 10,000/-
Equity share:
- No equity share (Borrower) in Tier-1
- 80:20 cases under T-2
- 90:10 Females/Transgender/Differently able Persons
- Minimum 25% for commercial vehicle
Markup Rate:
-
- 0% for borrowers (subsidized by the Government of Punjab).
- 6KM + 2.40 % p.a to be paid by GoPb to the Bank of Punjab.
Impact:
- No. of 4000 SMEs will be facilitated with the lending amount of Rs. 36.00 Billion under the subsidy budget of Rs.9.000 Billion from GoPb.
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