Punjab Rozgar Scheme 2020
PC: Brandsynario

You may have noticed that since yesterday, everyone is talking about the Punjab Rozgar Scheme 2020. Punjab Chief Minister Usman Buzdar has launched the rozgar scheme, allowing young individuals to take loans up to PKR 10 million to start their own business.

The scheme will promote employment across the province. Interested individuals who are in-between the age of 20-50 can apply for the loans. However, they will be required to have a valid CNIC to be eligible.

Moreover, applicants will have to submit a fee of Rs. 2000 (the amount is non-refundable) once the application has been officially submitted. The overall aim of the scheme is to distribute as many as PKR 30 bn among youngsters and provide 1.6 million job opportunities.

But, before you can apply for the Punjab Rozgar Scheme 2020, you must fully understand the eligibility and criteria. Some specific conditions and requirements have to be met before the loan is approved.

Punjab Rozgar Scheme 2020: Who Can Apply?

The following individuals are eligible to apply for the scheme:

  • Existing Businesses Owners (must have viable businesses plan to recover from COVID-19)
  • Micro Enterprises that wish to adopt to cleaner energy sources,  improve their operation’s environmental performance
  • Skilled Workers
  • Artists
  • TVET diploma/certificate holders who have technical or vocational training
  • University students
  • College graduates with entrepreneurship skills

Punjab Rozgar Scheme 2020: Eligibility

As mentioned above, individuals between the age of 20-50 can apply for the loans. However, the following is also required to be considered eligible:

  • Any gender M/F/ or even transgender people can apply
  • The individual must be a valid CNIC holder and a legal citizen of Pakistan, and a resident of Punjab
  • The location of the business setup should be within Punjab
  • Startups require an utterly viable business plan
  • Must have a slate-clean credit history
  • Sole Proprietor, Partnership, or any business fulfilling other eligibility criteria
  • Existing businesses must have a viable business plan that focuses on sustaining the impact of COVID-19

Terms & Conditions

Read the following very thoroughly:

Feature Description
Loan Limit
  • Upto Rs. 10.00 Million
    1. Clean lending: from Rs. 100,000/- to Rs. 1,000,000/-
    2. 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 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

  • Security for loan limit from Rs. 100,000/- to Rs. 500,000/-

Personal Guarantee of the borrower along with the net worth statement.

  • 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)


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 the respective DC rate.


B. Property valuation may be established from the Wealth Tax statement.


C. Evaluation by Pakistan Banks Association (PBA) approved evaluator/agent


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.

Punjab Rozgar Scheme 2020: Online Form

Punjab Rozgar Scheme 2020 Application

Individuals can visit https://rozgar.psic.punjab.gov.pk/ to apply for the rozgar scheme. They will be required to fill a form with authentic details for verification purposes.

Keep in mind that eligible applicants will not be able to download the application form; it must be done online. After opening the portal, applicants are required to click on ‘Applicant Signup.’ Once you’ve clicked on it, you will be redirected to a form asking for your necessary details.

These details include your full name, CNIC number, Email ID, mobile number, and password of choice. Once you have officially registered, you can log in on the portal with your verified credentials.

Once you have landed on the main page, you will see an option reading ‘New Application’ on the top right. Select that option, and you will be shown a list of required documents needed to fill the application with correct information.

A profile will then be created with your name and information. After all the personal data has been saved, you will then be required to fill in some details regarding your business.

Once that is done, you’ll be required to answer what kind of loan are you wanting. Under the section, you’ll be required to give a breakdown of the cost you are seeking. Here, you’ll also be required to share details of a personal guarantee you will provide for security purposes.

You will continue to provide the information asked, last but not least, you will be asked if you agree with all the terms and conditions. A second confirmation will be taken in case if you have any doubts. If you are satisfied with your application, submit it officially on the Punjab Rozgar Scheme 2020 portal, you’ receive a message on the registered number with the application registration number, and you’ll be asked to submit a minimal fee of PKR 2000.

Then all that is left is to sit back and wait for a reply.

Until then, stay tuned to Brandsynario for more news and updates.