The Punjab government has introduced an initiative to offer interest-free loans to empower small and medium enterprises (SMEs).
The initiative is designed to address various business needs, including start-ups, business expansion, innovation, working capital, commercial logistics, and climate-friendly businesses.
The loan programme consists of two tiers, with “Tier 1” covering an amount ranging from Rs 10 lakh to Rs 50 lakh with personal guarantee for a period of up to five years at zero per cent interest rate and a processing fee of Rs 5,000.
In Tier-II, an amount ranging from Rs 60 lakh to Rs 3 crore will be provided, but it will require a secured guarantee, a period of five years with zero interest rate and a processing fee of Rs 10,000. Loans will be repaid in equal monthly instalments as per the terms of sanction, and late surcharge will be applicable on a daily basis from Rs.10,000.
The process of application
To submit an application, follow these steps:
Create an account to start the application.
Make sure the mobile number is registered in your name.
Take at least 15 minutes to complete the application.
Collect the form. Provide additional information if needed.
The application fee is set at Rs5,000 for Tier 1 and Rs10,000 for Tier 2, both of which are non-refundable.
After submitting the application, a registration number will be provided on the screen as well as through SMS. Applicants will receive SMS updates on the status of their application and can check it on the designated website given here.
