Etimaad.org offers an innovative scheme providing interest-free loans of up to PKR 1 million through a digital SME card. This initiative is designed to support small entrepreneurs in Punjab, helping them grow and sustain their businesses while ensuring structured and transparent utilization of funds through digital channels such as mobile apps and POS systems.
Key Features:
- Maximum Loan Amount: PKR 1 million
- Loan Tenure: 3 years
- Loan Type: Revolving credit facility available for 12 months
- Repayment Term: 24 equal monthly installments after the first year
- Grace Period: 3 months from card issuance before repayment begins
Usage of Funds:
- Payments to vendors and suppliers
- Utility bills, government fees, and taxes
- Cash withdrawals (up to 25% of the limit) for miscellaneous business expenses
- Digital transactions via POS and mobile app
- Interest Rate for End-Users: 0%
Eligibility Criteria:
- Open to all small entrepreneurs (SEs) in Pakistan
- Age requirement: 21 to 57 years
- Must be a Pakistani national residing in Punjab
- Valid CNIC and mobile number registered in the applicant's name
- Existing or prospective business located in Pakistan
- Satisfactory credit and psychometric assessment
- Only one application allowed per individual and business
- Clean credit history with no overdue loans
How to Apply:
- Applications must be submitted digitally via the PITB portal.
- A non-refundable processing fee of PKR 500 is required.
- Digital verification of CNIC, creditworthiness, and business premises will be conducted by authorized agencies.
Loan Usage and Repayment Details:
- First 50% Limit: Available for use within the first 6 months.
- Grace Period: 3 months after card issuance before repayments begin.
- After the grace period, borrowers will start making monthly installments, with a minimum payment of 5% of the outstanding loan balance (principal only).
- Second 50% Limit: Released upon satisfactory usage, regular repayments, and registration with PRA/FBR.
- Funds must be used for business-related purposes; non-essential transactions (e.g., personal consumption, entertainment) are restricted.
- The remaining balance after the first year will be repaid over 2 years in equal monthly installments (EMIs).
Charges and Fees:
- Annual Card Fee: PKR 25,000 + FED, deducted from the approved limit.
- Additional Charges: Life assurance, card issuance, and delivery charges are covered by the scheme.
- Late payment charges will apply as per the bank’s policy.
Security Details:
- A personal guarantee digitally signed by the borrower is required.
- Life assurance is included in the loan portfolio.
- Urban Unit will conduct physical verification of the business premises within 6 months of loan approval and annually thereafter.
Key Conditions:
- Funds must be used strictly for core business activities; non-business-related transactions are blocked.
- Registration with PRA/FBR is mandatory within six months of card issuance.
- Only one application is permitted per individual/business.
Additional Support for Applicants:
- Feasibility studies are available on the PSIC and BOP websites for startups and new businesses.