Punjab Announces Interest-Free Business Loans of Up to Rs. 100 Million

Punjab has announced a Rs. 300 billion business financing programme offering interest-free loans of up to Rs. 100 million. Larger loans would carry 3% or 5% markup, with industrial estate improvements also part of the province’s plans.

LAHORE: Punjab is planning business financing and industrial estate upgrades to support commercial and manufacturing activity across the province.

Provincial Industries and Commerce Minister Chaudhry Shafay Hussain outlined the financing programme during a board meeting of the Punjab Small Industries Corporation (PSIC), a provincial agency supporting small industries. The meeting took place at PSIC House on Davis Road in Lahore, according to reports published on October 21.

Rs. 10 Crore Without Interest

Hussain said the programme would provide eligible businesses with interest-free loans of up to Rs. 100 million, equal to Rs. 10 crore.

The announced financing bands carry different rates of markup, the charge borrowers pay on top of the loan amount.

The minister said the government planned to introduce the Rs. 300 billion programme during 2026.

Loan Plan Follows July Announcement

Hussain had discussed the financing programme earlier in July during a meeting with representatives of the Sargodha Chamber of Commerce and Industry.

At the time, he said Punjab planned to introduce the scheme in October in partnership with the Bank of Punjab. The earlier announcement also mentioned interest-free borrowing of up to Rs. 100 million.

Minister Orders Work Across 24 Industrial Estates

During the latest meeting, Hussain directed officials to speed up infrastructure improvements at 24 small industrial estates across Punjab.

Officials also reviewed Mandi Bahauddin’s first small industrial estate. Authorities plan to process industrial plot applications online and reserve 20% of plots for overseas Pakistanis. The quota concerns industrial plots.

Application Details Need Clarification

Hussain said interest-free lending under the Chief Minister’s Asaan Karobar Finance Scheme was continuing.

The October 21 reports did not provide an application opening date, registration deadline, repayment schedule or detailed eligibility rules for the announced Rs. 100 million loans. They also did not identify a dedicated application portal for the higher financing limit.