How to Apply for Punjab Rozgar Scheme 2020 with Online Form

Punjab government is launching the Punjab Rozgar Scheme 2020. In this loan scheme, 3 Billion Rupees will be distributed among citizens of Pakistan irrespective of their gender. This is an employment scheme initiated by the Government of Punjab under the supervision of Chief Minister Usman Buzdar. To apply one for this scheme you have to follow some steps, rules, terms, and conditions. In this article, you’ll learn about how to Apply for Punjab Rozgar Scheme 2020 with step by step procedure. Follow this link to open Punjab Rozgar Scheme online form. https://rozgar.psic.punjab.gov.pk/. Let’s have a look at the method to apply for Punjab Rozgar Scheme 2020.

Table of Contents HIDE

1 Scope of Punjab Rozgar Scheme

2 Who Can Apply

3 Eligibility Criteria

4 Terms & Conditions

5 Schedule of Charges

6 Instructions Before Applying

7 Conclusion

Scope of Punjab Rozgar Scheme

Punjab Rozgar Scheme will facilitate in terms of financial support to startups and existing businesses in Punjab with a special focus on COVID-19 hit businesses. The scheme emphasizes trade, service, manufacturing, agriculture, and livestock sectors.

Under Punjab Green Development Program financial support will also be provided to Micro and other enterprises that want to adopt resource-efficient and cleaner production technologies to improve environmental performance.

Who Can Apply

University/College Graduates with entrepreneurial skill
Diploma/Certificate holder from TVET having technical/vocational training.
Artisans and skilled workers
Existing Businesses
(However, preference will be given to existing businesses in wake of the current COVID-19 pandemic)
Micro and other enterprises that apply for a loan to adopt resource-efficient and cleaner production technologies or any Green / Environment-friendly intervention to improve the environmental performance of their operations.

Eligibility Criteria

The following eligibility criteria will be adhered to process the loans under Punjab Rozgar Scheme:

Age: 20 to 50 years
Gender: Male / Female / Transgender
Resident: Citizen of Pakistan, Resident in Punjab, verified through CNIC
Business Location: Punjab
Business Type: Sole Proprietor, Partnership, or any business fulfilling other eligibility criteria
Must have a clean e-CIB / Credit History
For startups / new businesses
- Having a viable business plan
For existing businesses
- Having a viable business plan with a focus to sustain the impact of COVID-19
Having Valid CNIC
Any other parameter to be set by Punjab Small Industries Corporation (PSIC) / Government

Terms & Conditions

FEATURE	DESCRIPTION
Loan limit	Upto Rs. 10.00 Million Clean lending: from Rs. 100,000/- to Rs. 1,000,000/- Secured lending: from Rs. 1,000,001/- to Rs. 10,000,000/- Under the Punjab Green Development Program, the limit of a loan will remain the same. However, preference will be given to the micro-enterprises, ready to adopt the environment improving technology, having up to 10 numbers of employees.
Purpose of loan	Setting up of new business Balancing, Modernization and Replacement (BM&R) for existing businesses Working Capital
MSME Sector	Manufacturing, Service, Trading, Agriculture, and Live Stock (Environment Friendly / Quality Improving Micro Enterprises as defined above will also be considered under the Punjab Green Development Program)
Processing fee	Rs. 2000/- (non-refundable) at the time of submission of application
Tenure of loan / Repayment Period	From 02 to 05 years including a grace period
Grace period	Up to Six (06) Months (However, the markup will be charged during the grace period)
Type of loan	Term loan as per bank policy and working capital
Cost of Capital
Cost of Capital	Cost of Capital to be paid by Borrower: 4% for clean lending 5% for secured lending
Debt: Equity	80:20 (For males) 90:10 (Women, Transgender and Differently abled) (Meaning thereby 20% / 10% of the project cost will be invested by the borrower)
Disbursement of loans	In installment(s) as per the approved business plan
Security of loan	1. Security for Clean Lending i. Security for loan limit from Rs. 100,000/- to Rs. 500,000/- Personal Guarantee of the borrower along with the net worth statement. ii. Security for loan limit from Rs. 500,001/- to Rs. 1,000,000/- · Personal Guarantee of the borrower along with at least one, Third Party guarantor with overall net worth collectively equal to the size of the loan applied. (Third Party should be a citizen of Pakistan and resident of Punjab having a valid CNIC and must not be older than 55 years. Moreover, e-CIB of the third party should be clean i.e. it should not have any overdue or write off history) OR · Guarantee of Government employee of BS-10 and above along with a personal guarantee of the borrower. (Departmental guarantee of the government employee will be mandatory) Net Worth / Wealth Description and Calculation Criteria: · Net Worth may be in the form of Tangible Asset i.e Property or Vehicle ownership and may be assessed as follows: a. Property may be valued at respective DC rates. OR b. Property valuation may be established from the Wealth Tax statement. OR c. Evaluation by Pakistan Banks Association (PBA) approved evaluator/agent OR d. Vehicle valuation shall be invoice price less depreciation (10% for each passing year). 2. Security for loan limit from Rs. 1,000,001/- to 10,000,000/- Mortgage of Assets Asset description a. Residential / Commercial / Industrial / Agricultural Property/vehicle has a clean title and clear access (acceptable to the bank) and valued by banks approved appraiser as per the bank’s policy. b. The property should be in the name of the borrower or blood relative of individual/proprietor/partners. c. Documentation shall be as per bank credit policy / legal division. Charge / hypothecation on fixed / current assets as per internal / external regulations.

Schedule of Charges

All the Schedule of Charges to be paid by the Applicant/Borrower will be as under:

Application Processing Fee	Rs.2000/- (non-refundable) at the time of submission of application
Valuation / legal / documentation charges inclusive of revenue stamps, Government duties / fee etc.	At Actual Rate
Insurance ( if applicable)	At Actual Rate
Partial / Balloon / Early Settlement Charges	NIL
Late Installment Payment Charges	Rs. 1 per 1000 per day on the principal amount to be calculated from monthly installment from the due date till the date of actual payment

Instructions Before Applying

You must have scanned copies / clear visible pictures of the following documents ready before you start your application:

A picture with a complete face
Front-side of CNIC
Back-side of CNIC
Latest Educational degree / Certificate, if and whatever applicable (Matric, Intermediate, Bachelors, Masters, Ph.D.), etc (if applicable)
Experience certificate(s) (if applicable)
License / Registration with Chamber or Trade Body (if applicable)
Scanned Copy of Security Documents to be offered for availing Loan

You must have the following information handy before you start your application:

National Tax Number(non-mandatory), in case you don’t have one please register at https://iris.fbr.gov.pk/
Consumer ID of Electricity bill installed at your current address
Consumer ID of Electricity bill installed at your current office address (if applicable)
Registration number of any vehicle registered in your name (if applicable)
In the case of new business an estimate of Monthly business income, business expenses, household expenses, and other income
In the case of existing business actual Monthly business income, business expenses, household expenses, and other income
Name, CNIC, and Mobile numbers of Two References other than a Blood relative

Please note:

This application shall take at least 15 minutes to complete subject to the availability of the above-listed information/documents.
You may complete the form in one go or in trenches by saving uploaded sections and submit at any time
After submission of the application, no change/amendment shall be allowed
Please upload as much information as you have e.g. Financial Statements, Business Feasibility, Last 6 months Bank statement, etc. This shall help to better evaluate your application
Once the form is submitted, your Application Registration Number (ARN) shall appear on the screen and you will also receive an SMS stating the same, please keep it saved
Please visit the nearest branch of The Bank of Punjab (BOP) along with Application Registration Number (ARN) in order to deposit the processing fee of Rs. 2,000/- after which processing of your application will start
To find the nearest branch of The Bank of Punjab (BOP), please visit this link (https://www.bop.com.pk/Branch-Network)
You will receive SMS once your application moves to the next stage of the process, however, you may check the application status on this Link as well (https://rozgar.psic.punjab.gov.pk)

Conclusion

To conclude the above discussion, I can say that this is a remarkable step taken by the Punjab government. To minimize the unemployment rate in the province this would be a milestone.

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