CM Punjab Rozgar Scheme 2026: How to Get a Business Loan Up to Rs 1 Crore
CM Punjab Rozgar Scheme 2026
Want to start or expand a small business in Punjab without taking a high-interest bank loan? The CM Punjab Rozgar Scheme offers financing from Rs 100,000 to Rs 10 million at a subsidised markup of just 4% to 5%. Here’s how the scheme works and how to apply in 2026.
What Is the CM Punjab Rozgar Scheme?
This is a government-backed business loan programme run jointly by the Punjab Small Industries Corporation (PSIC) and the Bank of Punjab (BOP). It gives entrepreneurs access to funding at rates far below what commercial banks normally charge.
The scheme has been running since 2020 and continues into 2026 under the Punjab government led by Chief Minister Maryam Nawaz Sharif. Its focus stays the same: helping people start new businesses or grow existing small and medium enterprises (SMEs) across manufacturing, trade, services, and allied sectors.
Loan Amounts and Markup Rates
The scheme splits financing into two categories depending on how much you need:
| Loan Type | Amount | Markup Rate | Security Required |
|---|---|---|---|
| Clean loan | Rs 100,000 – Rs 1,000,000 | 4% fixed | Personal guarantee (no property mortgage) |
| Secured loan | Rs 1,000,000 – Rs 10,000,000 | 5% fixed | Property or vehicle mortgage |
Repayment tenure runs from 2 to 5 years, and every loan includes a 6-month grace period before instalments begin, giving your business time to get on its feet.
On the equity side, male applicants contribute 20% of the project cost while the bank finances the remaining 80%. Women, transgender applicants, and persons with disabilities get relaxed terms, contributing only 10% while the bank covers 90%.
Who Can Apply
The eligibility rules are set jointly by PSIC and the government, and they apply equally across genders. To qualify, you need to:
- Be between 20 and 50 years old
- Hold a valid CNIC showing Punjab residency
- Run your business, or plan to run it, within Punjab
- Have a clean e-CIB credit report with no bank defaults
- Present a workable business plan, whether you’re starting fresh or expanding
The scheme is open to university graduates, TVET diploma holders, and skilled artisans alike — a formal degree isn’t compulsory if you can show relevant skills or trade experience. Both new startups and running businesses can apply, as long as the numbers make sense.
Documents You’ll Need
Keep scanned copies of these ready before you start your application:
- CNIC (front and back, clear scan)
- Domicile certificate as proof of Punjab residency
- Recent passport-size photograph
- Educational or trade certificates, where applicable
- A simple business plan or feasibility summary
- Personal guarantee documents for loans up to Rs 1 million
- Mortgage documents (property or vehicle title) for loans above Rs 1 million
For loans between Rs 500,000 and Rs 1 million, you’ll also need a third-party guarantor — either a Punjab resident under 55 with a clean credit history, or a government employee at BPS-10 or above.
How to Apply Online
- Go to the official portal at rozgar.psic.punjab.gov.pk.
- Register using your CNIC, mobile number, and email address.
- Complete your personal and educational profile.
- Fill in your business proposal — mention clearly whether it’s a new startup or an expansion.
- Upload all required documents in the checklist.
- Generate a challan for the processing fee and pay it at any Bank of Punjab branch.
- Submit your form and save the tracking ID to monitor your application status.
What Happens After You Apply
Once submitted, your application moves through three stages:
- Initial screening — PSIC checks that your documents and eligibility match the criteria.
- Bank assessment — Bank of Punjab reviews your credit history and business feasibility.
- Field verification — a team may visit your address or business site to confirm the details you submitted.
If everything checks out, the loan gets approved and the funds are transferred directly to your Bank of Punjab account.
Who This Scheme Suits Best
This works well for skilled youth, unemployed graduates, women entrepreneurs, and small traders who want to grow a serious business. It’s not designed for people looking for a free grant — it’s a loan, and timely repayment matters for your future credit standing.
Government employees and existing bank defaulters aren’t eligible to apply, so check your credit history through e-CIB before you begin.
Common Reasons Applications Get Rejected
Save yourself time by avoiding these frequent mistakes:
- Submitting an incomplete form or missing documents
- Presenting a business plan without clear financial numbers
- Mismatched information between your CNIC, income, and business details
- An unverified or ineligible guarantor
- Applying outside the 20–50 age bracket or without Punjab domicile
Frequently Asked Questions
What is the maximum loan amount under this scheme?
You can borrow up to Rs 10 million (Rs 1 crore), depending on your business needs and the collateral you can offer.
Is this an interest-free loan?
No. The government subsidises part of the cost, so you pay a fixed markup of 4% for clean loans or 5% for secured loans — well below standard commercial bank rates.
Can women apply for a lower down payment?
Yes. Women, transgender applicants, and persons with disabilities only need to contribute 10% equity, compared to 20% for male applicants.
Do I need collateral to apply?
Only for loans above Rs 1 million, which require property or vehicle mortgage documents. Smaller loans need a personal guarantee instead.
How long is the repayment period?
Between 2 and 5 years, including a 6-month grace period before repayments start.
Where do I apply for this loan?
Applications are submitted online at rozgar.psic.punjab.gov.pk, with the processing fee payable at any Bank of Punjab branch.
