The Punjab government has introduced an initiative to provide interest-free loans to empower small and medium enterprises (SMEs).

The initiative will meet the following business needs: startups, business expansion, innovation, working capital, commercial logistics, and climate-friendly businesses.

The loan program has two tiers, with "Tier 1" offering personal guarantees of between Rs 1 million and Rs 5 million at zero percent interest for a period of up to five years and a processing fee of Rs 5,000.

It offers Tier 2: loans of up to Rs 30 million to be provided at a secured collaterals of Rs 6 million, for five years. The interest will be zero per annum, and processing fee will also be Rs 10,000.

The borrower will repay equated monthly instalments as defined in the sanction letter. Any late surcharges that attract on a day-to-day basis from Rs 1 to Rs 1,000 per day will be collected.

Asaan Karobar Loan Scheme Application Procedure

The following documents, including passport-sized photographs and scanned copies or clear images of the identity card, should be at hand before commencing the application.
 
In addition, prior to commencing the application process, please ensure that you possess the mobile number registered with your identity card; name; and copies of your identity card. You also should have two reference mobile numbers; in this case, the reference can't be any blood relatives of yours.

Besides this, also present proof of being an active tax filer and business income/expense information along with rental agreement and transfer letter or copies of registry relating to your business and residential addresses and pay the application fee.

Collateral (settlement) may either be property transfer letter, registry, individual, or government securities.
To submit an application, these are the requirements below:

Start making an account by beginning an application.

Your registered mobile number in your name.

Use a minimum of 15 minutes for completing the application

Submit form.

Attach further supporting information.

For both the classes, it would be on non-refundable fees 5,000 in case of Tier1 and 10,000 Tier 2.

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After submitting the application, a registration number will be generated on the screen as well as through SMS. Applicants will receive SMS updates about the status of their application.