How one can apply for Punjab Rozgar Scheme loan

Punjab Government will provide loans up to Rs 10 million to eligible people

Punjab Chief Minister Usman Buzdar has launched the Punjab Rozgar Scheme 2020 today under which loans up to Rs 10 million will be given to increase employment in the province.

Punjab Rozgar Scheme will provide total loans of Rs 30 billion to provide subsidized credit facilities to the micro, small and medium (MSMEs) startups and existing business in collaboration with commercial Banks. The loans will range from Rs 100, 000 to 10 million.

Individuals between the ages of 20 to 50 can apply for the loans by signing up through their CNICs on

The application fee of the programme is Rs2000 (non-refundable) and must be submitted once the application has been submitted.

Who can apply?

University/college graduates with entrepreneurial skill

The Diploma/certificate holder from TVET with technical/vocational training

Artisans and skilled workers

Existing businesses (However, preference will be given to existing businesses in wake of the current COVID-19 pandemic)

Micro and other enterprises that apply for a loan to adopt resource-efficient and cleaner production technologies or any green / environment-friendly intervention to improve the environmental performance of their operations

Who is Eligible to apply

Male / Female / Transgender

Citizen of Pakistan, Resident in Punjab, verified through CNIC

Business Location: Punjab

Sole Proprietor, Partnership, or any business fulfilling other eligibility criteria

Must have a clean e-CIB / Credit History

For startups / new businesses (Having a viable business plan)

For existing businesses (Having a viable business plan with a focus to sustain the impact of COVID-19)

Having valid CNIC

Any other parameter to be set by Punjab Small Industries Corporation (PSIC) / Government

Terms & Conditions of loan



Loan Limit

  • Up to Rs. 10.00 Million
    1. Clean lending: from Rs. 100,000/- to Rs. 1,000,000/-
    2. Secured lending: from Rs. 1,000,001/- to Rs. 10,000,000/-

Under Punjab Green Development Program, the limit of a loan will remain the same. However, preference will be given to the micro-enterprises, ready to adopt the environment improving technology, having up to 10 numbers of employees.

Purpose of loan

Setting up of new business

Balancing, Modernization and Replacement (BM&R) for existing businesses

Working Capital

MSME Sector

Manufacturing, Service, Trading, Agriculture and Live Stock

(Environment Friendly / Quality Improving Micro Enterprises as defined above will also be considered under the Punjab Green Development Program)

Processing fee

Rs. 2000/- (non-refundable) at the time of submission of application

Tenure of loan/Repayment Period

From 02 to 05 years including a grace period

Grace period

Up to Six (06) Months (However, the markup will be charged during the grace period)

Type of loan

Term loan as per bank policy and working capital

Cost of Capital

Cost of Capital to be paid by Borrower:

4% for clean lending

5% for secured lending

Debt: Equity

80:20 (For males)

90:10 (Women, Transgender and Differently abled)

(Meaning thereby 20% / 10% of the project cost will be invested by the borrower) 

Disbursement of loans

In installment(s) as per approved business plan

1. Security for Clean Lending

Security for loan limit from Rs. 100,000/- to Rs. 500,000/-

Personal Guarantee of the borrower along with net worth statement.

Security for loan limit from Rs. 500,001/- to Rs. 1,000,000/-

Personal Guarantee of the borrower along with at least one, Third Party guarantor with overall net worth collectively equal to size of the loan applied.

(Third Party should be a citizen of Pakistan and resident of the Punjab having a valid CNIC and must not be older than 55 years. Moreover, e-CIB of third party should be clean i.e. it should not have any overdue or write off history)


Guarantee of Government employee of BS-10 and above along with personal guarantee of the borrower.

(Departmental guarantee of the government employee will be mandatory)

Punjab Chief Minister Usman Buzdar has launched the Punjab Rozgar Scheme 2020 today under which loans up to Rs10 million will be given to increase employment in the province.

Net Worth / Wealth Description and Calculation Criteria:

Net Worth may be in the form of Tangible Asset i.e Property or Vehicle ownership and may be assessed as follows:

A. Property may be valued at respective DC rate.


B. Property valuation may be established from Wealth Tax statement.


C. Evaluation by Pakistan Banks Association (PBA) approved evaluator/agent


D. Vehicle valuation shall be invoice price less depreciation (10% for each passing year).

2. Security for loan limit from Rs. 1,000,001/- to 10,000,000/-

Mortgage of Assets

Asset description

A. Residential / Commercial / Industrial / Agricultural Property / vehicle having clean title and clear access (acceptable to the bank) and valued by banks approved appraiser as per bank’s policy.

B. The property should be in the name of borrower or blood relative of individual / proprietor / partners.

C. Documentation shall be as per bank credit policy / legal division. Charge / hypothecation on fixed / current assets as per internal / external regulations.

           Web Desk

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