Digital SME Card Punjab Phase 2 Loan Usage and Repayment Plan – Complete Guide 2025
The Digital SME Card Punjab Phase 2 is part of the Government of Punjab’s Asaan Karobar Card scheme, designed to provide interest-free loans to small and medium enterprises (SMEs). With loan limits of up to PKR 1 million, this program empowers entrepreneurs, startups, and small business owners by giving them access to structured, transparent, and digital financial support.
This article explains in detail the loan usage rules and repayment plan for Digital SME Card Punjab Phase 2, ensuring applicants understand how funds can be used, repayment timelines, and compliance conditions.
If you are searching for “Digital SME Card Punjab loan repayment plan” or “how to use Punjab SME loan Phase 2”, this guide covers everything you need.
What is the Digital SME Card Punjab Phase 2?
The Digital SME Card Punjab Phase 2 is a smart financing tool issued under the Punjab Asaan Karobar Card program. It functions like a business credit card that provides interest-free financing to SMEs and startups.
Key Highlights:
- Loan Limit: PKR 100,000 – 1,000,000
- Tenure: 3 years
- Interest Rate: 0% (interest-free)
- Loan Facility: Revolving credit facility
- Mode of Usage: POS machines, mobile app, and digital payments
- Application: Online via PITB portal
Loan Usage Rules – Digital SME Card Punjab Phase 2:
The Digital SME Card Punjab Phase 2 has been designed to restrict non-business transactions and ensure the funds are used only for entrepreneurial and SME purposes.
✅ Allowed Loan Usage
Borrowers can use the Punjab Digital SME Loan 2025 for:
- Vendor and supplier payments
- Purchase of raw materials or stock
- Utility bills (electricity, gas, water)
- Government fees and taxes
- Digital business payments via POS and mobile app
- Cash withdrawals (up to 25% of loan limit) for miscellaneous business needs
❌ Restricted Loan Usage
Funds cannot be used for:
- Personal shopping and family expenses
- Luxury or entertainment activities
- Non-business purposes
- Any transaction flagged as non-productive by the system
Note: The digital platform automatically blocks non-essential transactions, ensuring proper loan utilization.
Read Also: CM Punjab Laptop Scheme Phase 2 Registration 2025
Repayment Plan – Digital SME Card Punjab Phase 2:
The repayment structure of the scheme is flexible yet disciplined, designed to encourage responsible borrowing.
1. Grace Period
- Borrowers get a 3-month grace period after card issuance.
- No installment payments are required during this period.
2. First 50% Loan Limit
- Accessible in the first 6 months of card issuance.
- Borrower must demonstrate regular repayments and responsible usage.
3. Second 50% Loan Limit
- Released only if:
- Borrower maintains timely repayments
- Registration with PRA (Punjab Revenue Authority) or FBR completed
4. Monthly Repayment Rules
- After 3 months, borrower begins monthly repayments.
- Minimum monthly payment: 5% of the outstanding principal.
- Payments must be made digitally through designated channels.
5. Final Repayment Schedule
- At the end of the first year, the remaining loan balance is converted into 24 Equal Monthly Installments (EMIs).
- Repayment period: 2 years.
- Total loan tenure: 3 years (including grace period).
Fees and Charges of Digital SME Card 2025:
Though the scheme is interest-free, some charges apply:
- Processing Fee: PKR 500 (non-refundable)
- Annual Card Fee: PKR 25,000 + FED (deducted from loan limit)
- Life Assurance & Card Issuance: Covered by the scheme
- Late Payment Penalty: As per bank’s schedule of charges
Read Also: Government Business Loan Scheme Phase 2 Fees and Charges Explained – Complete Guide 2025
Eligibility Criteria – Punjab SME Card Phase 2 2025:
To apply for the loan, applicants must fulfill the following conditions:
- Age: 21 to 57 years
- Must be a Pakistani national and resident of Punjab
- Valid CNIC and registered mobile number
- Must own an existing or planned business in Punjab
- Clean credit history (no overdue loans)
- Pass psychometric and credit assessment
- Only one application per person/business
- Must register with PRA/FBR within 6 months
Read More: CM Punjab Laptop Scheme Phase 2 Eligibility Criteria – Who Can Apply in 2025
Application Process for Digital SME Card Punjab Loan:
Follow these steps to apply:
- Visit https://akc.punjab.gov.pk/cmpunjabfinance
- Click Apply Now
- Register with CNIC & mobile number
- Fill out application form with personal & business details
- Upload required documents (CNIC, business proof, photo, etc.)
- Pay PKR 500 processing fee
- Wait for digital verification & approval
- Once approved, card is issued and delivered to your address
Benefits of Digital SME Card Punjab Phase 2 2025:
The scheme offers multiple advantages compared to traditional SME loans:
- 100% interest-free financing
- Fully digital application and disbursement
- Transparent loan usage monitoring
- Encourages formal business registration with PRA/FBR
- Promotes youth and women entrepreneurship
- Includes life assurance coverage
- Flexible repayment plan with grace period
Digital SME Card Punjab Phase 2 – FAQs:
1. What is the maximum loan limit under Digital SME Card Phase 2?
The maximum loan amount is PKR 1 million.
2. How long is the repayment period?
Repayment is structured over 2 years in 24 monthly installments after the first year.
3. Do I need collateral for this loan?
No, the loan is collateral-free. Only a digital personal guarantee is required.
4. Can I withdraw cash from the card?
Yes, but cash withdrawals are limited to 25% of the total loan limit.
5. What happens if I delay my repayment?
Late payment charges will apply according to the bank’s schedule of charges.
6. Can women entrepreneurs apply for this scheme?
Yes, the program is inclusive and encourages women, youth, and startups.
7. Is the loan really interest-free?
Yes, the loan has 0% interest, but annual card fee, processing fee, and late charges apply.
Conclusion:
The Digital SME Card Punjab Phase 2 is a game-changer for entrepreneurs, startups, and SMEs in Punjab. With a clear loan usage policy, flexible repayment plan, and interest-free financing, it provides businesses with the resources they need to grow sustainably.
By following the repayment rules, maintaining tax compliance, and using funds for business purposes only, borrowers can maximize the benefits of this program and strengthen their entrepreneurial journey.
This scheme is not just a loan – it is a financial empowerment tool that combines digital technology with government support, ensuring transparency, accountability, and growth for Punjab’s business community.
