Punjab Rozgar Scheme 2024: Helping Small & Medium Enterprises

Overview of the Punjab Rozgar SMEs Scheme

The Punjab Rozgar Scheme is designed to support the growth and development of SMEs by offering financial assistance with favorable terms. This initiative is part of the government’s broader efforts to stimulate economic recovery post-COVID-19 and ensure the sustainability of small businesses. Below are the salient features and eligibility criteria of the scheme.

Key Features and Eligibility Criteria

Age: 20 to 50 years
Gender: Male, Female, Transgender
Qualification & Experience:

• University/College Graduates with entrepreneurial skills
• Diploma/Certificate holders from Technical and Vocational Education and Training (TVET)
• Artisans and skilled workers

Residence Status: Must be a citizen of Pakistan and a resident of Punjab, verified through CNIC

Type of Business: New and existing businesses

Loan Limit:

• Clean loans: Rs. 100,000 to Rs. 1,000,000
• Secured loans: Above Rs. 1,000,000 up to Rs. 10,000,000

Tenure for Loan: 2 to 5 years, including a 6-month grace period
Loan Type: Term Loan
Debt: Equity Ratio:

• For Males: 80:20
• For Females, Transgender, and Disabled: 90:10

Security Requirements

The security requirements for the Punjab Rozgar Scheme are tiered based on the loan amount:

For loans up to Rs. 500,000:

• Personal guarantee of the borrower along with a net worth statement

For loans above Rs. 500,000 up to Rs. 1,000,000:

• Personal guarantee of the borrower plus one of the following:
  • At least one third-party guarantee with a collective net worth equal to the loan amount, or
  • Guarantee of a government employee of BPS-10 and above
  • Net worth can be in the form of tangible assets such as property or vehicle ownership, assessed by various means including:
    • Property valued at DC rate by the bank
    • Property valuation established from wealth tax statement
    • Assessment conducted by an accredited evaluator recognized by the Pakistan Banks Association (PBA).
    • Vehicle valuation based on purchase price less depreciation (10% per year)

For loans above Rs. 1,000,000 up to Rs. 10,000,000:

• Mortgage of residential, commercial, industrial, or agricultural property, or a vehicle with a clean title and clear access acceptable to the bank

Pricing Structure

Customer Pricing:

• Clean loans: 4%
• Secured loans: 5%

Sectors Covered

The Punjab Rozgar Scheme covers all sectors, providing broad support to a diverse range of businesses across the province.

Application Process for SMEs

All applications must be submitted online through the portal designated by PSIC. The process is designed to be user-friendly and accessible, ensuring that potential applicants can easily navigate the requirements and submit their applications.

Processing Fee: Rs. 2,000 (Non-Refundable)

Detailed Guide to Applying for the Punjab Rozgar SMEs Scheme

Step-by-Step Application Process

1. Visit the Official Portal: Begin by visiting the official Punjab Rozgar Scheme portal at https://rozgar.psic.punjab.gov.pk/.
2. Create an Account: To begin, please register on the portal by entering your name, email address, and CNIC number for account creation.
3. Complete the Application Form: Fill out the detailed application form with accurate information about your business, personal details, and loan requirements. Ensure that all the mandatory fields are correctly filled.
4. Upload Required Documents: Prepare and upload all necessary documents. These typically include:
   • CNIC
   • Proof of residence in Punjab
   • Business plan or project proposal
   • Financial statements (for existing businesses)
   • Qualification and experience certificates
5. Review and Submit: Double-check all the information provided in the application form. Ensure that all uploaded documents are clear and legible. Once you are satisfied with your application, submit it through the portal.
6. Processing Fee Payment: Pay the non-refundable processing fee of Rs. 2,000 online through the available payment options.
7. Application Review: After submission, your application will be reviewed by the relevant authorities. You may be contacted for additional information or clarification during this process.
8. Approval and Disbursement: If your application is approved, you will be notified through the portal and other communication channels. The approved loan amount will be disbursed to your designated bank account.

Tips for a Successful SMEs Application

• Prepare a Strong Business Plan: Your business plan should clearly outline your business objectives, market analysis, financial projections, and how you plan to use the loan amount. A well-prepared business plan increases your chances of approval.
• Ensure Document Accuracy: Double-check all documents for accuracy and completeness. Any discrepancies or missing information can delay the processing of your application.
• Stay Responsive: Be available to respond to any queries or requests for additional information from the authorities. Prompt responses can expedite the review process.
• Seek Professional Help: If you are unsure about any part of the application process, consider seeking help from professionals such as business consultants or financial advisors.

Conclusion

The Punjab Rozgar Scheme is a comprehensive initiative aimed at empowering small and medium enterprises in Punjab. By providing subsidized loans with favorable terms, the scheme seeks to address the financial challenges faced by SMEs and promote economic growth. The detailed guidelines and simplified application process make it easier for entrepreneurs to access the financial support they need to start or expand their businesses. If you are an eligible entrepreneur in Punjab, take advantage of this opportunity to secure funding and contribute to the economic uplift of the region.

For more information and to apply, visit the official Punjab Rozgar Scheme portal at https://rozgar.psic.punjab.gov.pk/.