Punjab Business Loan 2025 – Asaan Karobar Finance Phase 2 Online Apply

The Punjab Business Loan 2025 – Asaan Karobar Finance Phase 2 is a flagship initiative of the Chief Minister of Punjab, designed to empower entrepreneurs, startups, women, farmers, and small business owners. With a total allocation of PKR 90 billion, this program offers interest-free loans (0% markup) to help individuals start new ventures or expand their existing businesses.

This scheme is one of the largest government-backed loan programs in Pakistan, aiming to reduce unemployment, strengthen SMEs, and promote financial independence across Punjab.

What is AKF (Asaan Karobar Finance)?

AKF stands for Asaan Karobar Finance, a government-backed finance scheme launched by the Punjab Government. Its core purpose is to provide interest-free business loans so that individuals with innovative ideas or existing businesses can grow without the burden of interest.

Phase 1 Impact: Over 4,200 businesses received PKR 31 billion in loans.
Phase 2 Expansion (2025): Now allocated PKR 90 billion to benefit thousands more.

This initiative directly supports youth, women, farmers, and SMEs, helping them establish sustainable businesses and contributing to Punjab’s overall economic growth.

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AKF Official Website – akf.punjab.gov.pk

The official portal for applying to the scheme is akf.punjab.gov.pk. It is the only official registration platform provided by the Government of Punjab.

What You Can Do on the Website:

Submit your online application for loans
Read the eligibility requirements and loan categories
Upload your business documents securely
Track the status of your application
Get official news and scheme updates

The portal ensures a transparent and digital process, making it easier for people from all across Punjab to apply without visiting offices physically.

Key Highlights of Punjab Business Loan 2025

Total Funding: PKR 90 Billion
Loan Range: PKR 100,000 – PKR 5,000,000
Markup: 0% (Interest-Free)
Repayment Period: 5 Years (easy installments)
Special Quota: Women & Youth
Apply At: akf.punjab.gov.pk

Why the Punjab Government Launched Phase 2

The Punjab Government is committed to economic growth and poverty reduction. After the overwhelming success of Phase 1 (where over 4,200 businesses received PKR 31 billion in loans), the demand for expansion was clear.

The main objectives of Phase 2 are:

To promote entrepreneurship and self-reliance
To reduce unemployment by creating new job opportunities
To empower women and youth with equal opportunities
To strengthen SMEs and local industries
To support farmers and producers with modern equipment and financing

Features of the Punjab Business Loan Scheme 2025

1. Interest-Free Loans

Borrowers only repay the principal amount – no markup or hidden charges.

2. Loan Flexibility

Small Loans: PKR 100,000 – 500,000
Medium Loans: Up to PKR 1,000,000
Large Loans: Up to PKR 5,000,000

3. Repayment Options

Flexible repayment period of up to 5 years in easy installments.

4. Special Quotas

Dedicated loan allocations for women entrepreneurs, graduates, and farmers.

5. Transparency & Security

The program is fully monitored by the Punjab Small Industries Corporation (PSIC) and implemented through the Bank of Punjab (BOP).

Eligibility Criteria for AKF Punjab Business Loan 2025

Applicants must meet the following requirements:

Must be a resident of Punjab
Age between 20 – 50 years
Valid CNIC
A clear business idea or an existing business
Women, youth, and farmers are strongly encouraged to apply

Required Documents for Application (Asaan Karobar Finance Phase 2 Online Apply)

Before applying, applicants must prepare scanned copies or clear pictures of the following documents:

Passport-size picture / Selfie
CNIC (Front side)
CNIC (Back side)
Mobile number registered with CNIC
Names, CNIC copies, and mobile numbers of two references (not blood relatives)
Copy of Rent Agreement / Transfer Letter / Registry / Utility Bill for business and residential addresses (whichever applicable)
Proof of income and expenses (for existing businesses) or estimates (for new businesses)
Active Tax Filer status proof
Security details for Tier 2 loans (Property Transfer Letter, Registry, Government Securities, etc.)

Application Instructions – Step by Step

Sign Up Online
- Visit akf.punjab.gov.pk
- Use a mobile number registered in your name
Fill Out the Form
- Takes at least 15 minutes
- Can be saved as draft and submitted later
Upload Documents
- Business feasibility reports, financial statements, or bank statements (if available)
Application Fee
- Tier 1 (up to PKR 1 million): PKR 5,000 (non-refundable)
- Tier 2 (PKR 1 million – PKR 5 million): PKR 10,000 (non-refundable)
- After submission, you will get a PSID code for fee payment
Application Review
- Processing begins after full form submission + fee payment
- You will receive SMS updates on your application status

AKF Loan Registration

Security & Loan Tiers

Tier 1 Loans: Small loans up to PKR 1 million – no heavy security required
Tier 2 Loans: PKR 1 million – 5 million – require property or government-backed securities as collateral

Note: For logistics businesses, security requirements may not apply.

Politically Exposed Persons (PEP) Policy

Applicants who fall under the Politically Exposed Person (PEP) category must meet additional due diligence requirements.

PEPs include:

Senior politicians (MNAs, MPAs, Ministers)
High-ranking military officials (Lieutenant General or equivalent and above)
Senior government or judicial officials
Executives of state-owned corporations
Important political party officials
Senior international organization officials

Family members & close associates of PEPs are also covered under this policy.

Benefits of the Asaan Karobar Finance Phase 2

Encourages entrepreneurship and innovation
Creates thousands of jobs across Punjab
Provides equal opportunities for women and youth
Strengthens SMEs and local industries
Supports agriculture and farmers with modern financing
Helps build a self-reliant economy

Sectors Eligible for Financing

The Punjab Business Loan 2025 covers a wide range of sectors, including:

Agriculture & Farming
Dairy & Food Processing
Textile & Garments
Retail & Wholesale Business
IT Startups & Software Houses
Transport & Logistics
Manufacturing & Small Industries

Success of Phase 1

In Phase 1 of the program:

4,238 beneficiaries received loans
PKR 31 billion was distributed
Many startups grew into stable businesses
Thousands of jobs were created across Punjab

Phase 2 aims to triple these numbers and further strengthen the entrepreneurial ecosystem.

Frequently Asked Questions (FAQs)

1. What is Punjab Business Loan 2025?

It is an interest-free loan scheme under Asaan Karobar Finance Phase 2, launched by the Punjab Government.

2. Who can apply?

Any Punjab resident aged 20–50 with a valid CNIC. Women and youth have dedicated quotas.

3. How much loan can I apply for?

From PKR 100,000 up to PKR 5,000,000 depending on your business plan.

4. Is there any interest?

No, the scheme is 100% interest-free.

5. What is the repayment period?

Up to 5 years with flexible installments.

6. How can I apply?

Online at akf.punjab.gov.pk.

7. Which bank is handling the scheme?

The Bank of Punjab (BOP) is the official partner bank.

8. Can women apply separately?

Yes, there is a special quota for women entrepreneurs.

9. Do I need collateral?

Tier 1 Loans: No heavy collateral required
Tier 2 Loans: Property or government-backed securities are needed

10. When will the loan be disbursed?

Once your application is verified and approved, funds are issued via BOP.

Conclusion

The Punjab Business Loan 2025 – Asaan Karobar Finance Phase 2 is one of the most powerful initiatives for economic empowerment in Punjab. With PKR 90 billion allocated, interest-free loans, and a transparent digital application process, this scheme is a golden chance for entrepreneurs, women, youth, and farmers.