The scheme is designed to support small businesses with structured digital channels, including mobile apps and POS systems, ensuring transparent use of funds. It is a major step to help entrepreneurs manage payments, utilities, and other business expenses easily.

Tenure of loans

Under the programme, loans have a tenure of 3 years. Borrowers can use a revolving credit facility for the first 12 months. After a 3-month grace period, repayment starts in 24 equal monthly installments.

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The loan can be used for vendor and supplier payments, utility bills, government fees, taxes, and up to 25% cash withdrawal for business purposes. All transactions are digital via POS or mobile apps. The scheme offers 0% interest, making it highly affordable.

Eligibility

Eligibility includes Pakistani nationals aged 21 to 57, with a valid CNIC, registered mobile number, and a business located in Punjab. Applicants must have a clean credit history and pass a credit and psychometric assessment. Only one application per individual and business is allowed.

How to apply

Applications are submitted online through the PITB portal with a non-refundable processing fee of Rs500. Authorized agencies verify CNIC, creditworthiness, and business premises digitally.

Borrowers can access the first 50% of the loan limit within 6 months. The remaining 50% is released after regular repayments and proper registration with PRA/FBR. Non-business expenses are blocked to ensure funds are used for core business activities.

Charges and card fee

Additional charges include an annual card fee of Rs25,000 plus FED, life assurance, and card issuance fees. Late payment penalties follow the bank’s policy. Security includes a digitally signed personal guarantee and life assurance coverage. Urban Unit conducts physical verification of business premises within six months and annually thereafter.

Extra support

The scheme also provides extra support, including feasibility studies for startups on PSIC and BOP websites. Entrepreneurs can call the 1786 helpline for assistance.

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This initiative makes it easier for small entrepreneurs to access finance without interest. It can boost small business growth, encourage digital payments, and improve financial discipline. Success depends on borrowers using funds responsibly and making regular repayments.