Starting or expanding a business in Punjab often stalls because commercial banks demand heavy collateral and charge market mark-up rates that small businesses cannot afford. The Punjab Rozgar Scheme, managed by the Punjab Small Industries Corporation (PSIC) in partnership with The Bank of Punjab (BOP), bridges this exact gap by offering concessionary, subsidized credit facilities ranging from PKR 100,000 up to PKR 10 million.
Whether you run a manufacturing setup, a local trade shop, a service-based agency, or a green venture, here is the complete, practical guide to eligibility, rate subsidies, security terms, and the application process.
Financing Limits and Mark-up Structure
The scheme caters to micro, small, and medium-sized enterprises (MSMEs). The financing is broken down across distinct brackets:
| Facility Detail | Clean Lending (No Property Collateral) | Asset-Backed Lending |
| Loan Amount | PKR 100,000 to PKR 1,000,000 | PKR 1,000,001 to PKR 10,000,000 |
| Mark-up Rate | Concessionary subsidized fixed rate | Subsidized fixed rate |
| Tenure | 2 to 5 Years | 2 to 5 Years |
| Grace Period | Up to 6 Months | Up to 6 Months |
| Borrower Contribution | 20% for males / 15% for females & transgender applicants | 20% for males / 15% for females & transgender applicants |
(Note: The mark-up is heavily subsidized by the Government of Punjab, meaning borrowers pay a fraction of regular KIBOR-linked commercial interest rates, with the provincial treasury directly paying the remaining difference to the bank).
Who Is Eligible to Apply?
To qualify for credit approval, applicants must meet specific baseline criteria:
- Residency: Must hold a valid CNIC and domicile of Punjab.
- Age Bracket: Between 20 and 50 years at the time of submission.
- Gender: Male, female, transgender, and differently-abled individuals are eligible. Specially prioritized quotas exist for women and cottage artisans.
- Business Location: The proposed or existing commercial business must be physically located within Punjab’s provincial borders.
- Profile Types:
- University/college graduates with verified technical or professional skills.
- Certified artisans and technicians from technical training institutes (such as TEVTA or PVTC).
- Existing business owners modernizing machinery or expanding working capital.
- Startups introducing resource-efficient or environmentally clean (green) operational methods.
Security and Guarantee Requirements
Banks evaluate repayment risk before sanctioning public funds:
- For Loans up to PKR 1 Million:
- Personal guarantee of the borrower.
- Personal guarantee of one or two third-party guarantors (preferably government or reputable private sector salaried employees with verifiable service records).
- For Loans Exceeding PKR 1 Million:
- Mortgage of residential, commercial, or agricultural immovable property with clean title deeds.
- Hypothecation of commercial machinery, equipment, or vehicles purchased using the scheme funds.
Required Documents
Ensure you have legible scanned copies ready before opening the application form:
- Applicant’s CNIC (front and back).
- Recent passport-size photograph.
- Domicile certificate of Punjab.
- Highest educational degree or technical diploma (TEVTA, NAVTTC, etc.).
- Basic Business Plan / Feasibility Outline (projected setup costs, monthly sales, rent, and utility estimates).
- Utility bill (electricity or gas) of residence and business location.
- Guarantor CNIC copies and their respective proof of income (salary slips or tax returns).
Step-by-Step Online Application Process
The entire application runs through an integrated digital portal to eliminate offline agent interference:
- Registration: Visit the official PSIC Rozgar Portal (
rozgar.psic.punjab.gov.pk) and click Register New User. - CNIC & Phone Authentication: Provide your CNIC, issue date, and an active mobile number registered under your name. Enter the OTP code sent to your phone.
- Select Facility Type: Choose between clean credit (up to 10 Lakhs) or collateral-backed funding (over 10 Lakhs).
- Enter Business Details: Outline your business idea. If it is an existing trade, declare your years of operation and current monthly turnover.
- Upload Documents: Upload scanned attachments in PDF or JPEG format.
- Processing Fee Payment: Generate the digital Challan Form for the non-refundable processing fee (PKR 2,000) and pay it at any designated Bank of Punjab (BOP) branch or via digital mobile banking.
- Submit & Track: Once paid, the system automatically registers the application and issues an Application Reference Number for tracking.
Verification and Final Disbursement
Once submitted, the processing workflow follows three strict checkpoints:
- Initial Desk Scrutiny: PSIC reviews the application for basic technical completeness and eligibility.
- Credit Analysis & e-CIB Check: The Bank of Punjab runs a central credit bureau check. Any active default on personal loans or credit cards results in an automatic system decline.
- Physical On-Ground Verification: A designated bank verification officer visits your physical business site or proposed workshop premises to confirm operational reality before final fund disbursement into your newly opened BOP account.