Nowadays, with the help of legitimate loan platforms, accessing a business loan in Pakistan has become very convenient.
Several government initiatives and non-profit organizations are designed to offer financial assistance to young entrepreneurs and business owners, enabling them to grow or expand their businesses.
Also read: How To Get 75 Lakh Interest-Free Agriculture Loans In Pakistan {5-75Lakh} Safe Loans
Many of you may not attempt to grow your business because of a lack of resources and funds. To save your time and business, we have compiled a list of resources that can contribute to getting a business loan in Pakistan.
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In this blog post, we will explore the complete process of how to get a business loan in Pakistan, uncover the loan amounts offered by government initiatives and non-profit organizations, and their eligibility criteria.
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Get a Business loan in Pakistan | Business loans in Pakistan online apply
List of reliable sources to get a business loan in Pakistan within budget.
- PMKJ
- PMYP
- PPAF
- Akhuwat
- Alkhidmat
- HBL Bank
- Meezan Bank
- Standard Chartered
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Government Loans For Small Business In Pakistan | Business Loan In Pakistan Online Apply
Business Loan In Pakistan With Low Interest Rates: There are many reputable government programs and initiatives that offer business loan in Pakistan some of them are highlighted below:
Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS)
- PPAF is a government initiative program designed to empower a wide range of entrepreneurs.
- This loan scheme offers financial assistance to young entrepreneurs who aspire to start or expand their existing businesses, particularly in the agriculture sector.
- The PPAF scheme also includes capacity-building components such as skill training and mentorship programs.
- The loan amount ranges from a few million rupees.
- PPAF offers various business loans for individuals and enterprises, aiming to support their economic initiatives, foster entrepreneurship, and contribute to sustainable development.
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Kamyab Jawan Scheme | Youth Entrepreneurship Scheme (PMKJ-YES)
- Ranging from PKR 5 lakh to 75 lakh, PMKJ provides business loans to empower young entrepreneurs enabling them to start a new venture.
- These loans assist in growing the business and investing in various business opportunities.
- The repayment duration for the PMKJ loan scheme is impressively 10 years.
- PMKJ-YES contributes to enhancing the entrepreneurial skills of individuals by providing training programs and offering mentorship opportunities.
- Visit the official website to apply for PMKJ Loan Scheme
- Eligibility Criteria: Individuals must meet certain eligibility criteria, including age range, business plans, and adherence to specific guidelines set by the program.
Business Loans from Non-Profit Organizations in Pakistan
Business Loans in Pakistan: Entrepreneurs and business owners who are looking for interest-free microfinance loans can consider non-profit organizations. Several notable organizations offer interest-free business loans in Pakistan. Some of them are highlighted below:
Akhuwat Foundation Business Loan
- Akhuwat Foundation is a well-known reputable organization that provides financial assistance through interest-free loan programs.
- Akhuwat Foundation has initiated a business loan program providing loans with 0% interest.
- The loan amount varies based on specific requirements and individual circumstances.
- Eligibility Criteria: CNIC with Pakistani nationality and age ranging from 18-62 years.
- To apply for an interest-free loan and loan process, visit the Akhuwat Foundation website
Alkhidmat Foundation Business Loan:
- Alkhidmat Foundation is a non-profit organization committed to alleviating the suffering of the poor by providing financial aid and services during times of difficulty.
- One of the initiatives of Alkhidmat Foundation is its interest-free business loan program for young entrepreneurs and small business owners to pursue business opportunities and cover unforeseen business expenses.
- The loan amount for business provided by Alkhidmat Foundation depends on the financial situation of the entrepreneur and varies.
- Visit the website to apply for Alkhidmat Mawakhat Program
Pakistan Poverty Alleviation Fund Interest-free Business Loan In Pakistan
- The largest government initiative program started for underserved communities is PPAF.
- PPAF provides interest-free business loans to deserving applicants to enhance their business activities or chase entrepreneurial opportunities.
- PPAF has designed loan amounts for different types of businesses, varying based on their specific needs and requirements.
- Visit the PPAF official website to avail interest-free loans.
Business Loans from Banks in Pakistan
Business Loan In Pakistan: Several reputable banks are legitimate sources to obtain loans in Pakistan. These banks offer a wide range of services, including business loans. Below are the following best banks to get a business loan in Pakistan with their loan amounts and eligibility criteria.
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HBL Small Business Loan
- HBL Bank is a well-reputed platform that provides microfinance loan services to individuals who need urgent loans, whether for investing in business activities or addressing immediate financial needs.
- Loan Amount: The amount for business loans offered by HBL Bank is PKR 20 million.
- Eligibility Requirement: To get a business loan from HBL Bank applicant’s age must range from 25 to 65 years old, and a business that has been in operation for at least 3 years.
- Website: Visit the official website to apply for HBL Bank Loan
Bank Alfalah Small Business Loan
- Bank Alfalah is a prominent landing platform that serves as the solution for various financial requirements and business funding needs.
- Alfalah Bank also offers small business loans to cater to the diverse needs of entrepreneurs and enterprises.
- Loan Amount: You can avail of business loans from Bank Alfalah with a loan amount of up to PKR 15 Million.
- Eligibility Requirement: You can apply for business loans from Bank Alfalah up to the age of 60 years
- Website: Apply now for Bank Alfalah Loan
Meezan Bank Small Business Loan
- Meezan Bank is the ultimate financial solution for small business loans, assisting individuals in fulfilling their entrepreneurial aspirations and achieving business success.
- Loan Amount: Meezan Bank provides business loans of up to PKR 25 Million
- Eligibility Requirement: The age range to avail of these loans is up to 60 years.
- To avail safe loans in Pakistan apply now for Meezan Bank Loan
Standard Chartered Small Business Loan
- Small business loan seekers can apply with Standard Chartered Bank which provides micro loans for various business needs and financial requirements.
- Loan Amount: Business Loan offered by Standard Chartered Bank is up to PKR 50 Million
- Age: The eligible age ranges from 45 to 60 years.
- Visit the official website to apply for Standard Chartered Loan
Advantages To Access Business Loans In Pakistan
- Asset Building: Business Loans may contribute to acquiring assets that enhance the long-term value and stability of the business over time. This includes machinery, equipment, or real estate.
- Emergency Funding: Getting a Business Loan in Pakistan can assist in managing urgent crises that may arise in business. These loans contribute to covering unexpected expenses, such as sudden market changes.
- Grabbing Opportunities: Business Loans can enable the chasing of marketing opportunities that might be missed due to a lack of resources. This includes activities such as launching a new product line or initiating a strategic partnership.
- Quick Access to Funds: Several online lenders offer business loans with a streamlined application process compared to traditional banking services.
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Disadvantages To Access Business Loans In Pakistan
- Interest Charges: Business owners may incur interest charges associated with business loans, thereby increasing the overall borrowing cost. Additionally, failure to repay on time may result in additional fees, which may impact the profitability of the business.
- Strict Eligibility Criteria: To access a business loan in Pakistan, business owners must meet the challenging eligibility criteria, which often require a good credit score.
- Collateral Requirements: To get a business loan in Pakistan, some lenders may require collateral. If the borrower is unable to repay the loan on time, business assets could be at risk.
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FAQ’s | Business Loan In Pakistan
What happens if I fail to repay my business loan in Pakistan
Before taking a business loan in Pakistan, make sure to understand the lender’s terms and conditions properly. Failure to repay the loan on time may result in legal action by the lenders, and additional interest charges will also be incurred.
Which government loan should I apply for my business?
You can apply for the Prime Minister Kamyaab Jawan-Youth Entrepreneurial Scheme (PMKJ-YES), a government initiative designed to provide business loans for entrepreneurs and business owners.
Which banks provide business loans in Pakistan?
After the approval of your application in the (PMKJ-YES), you can get a business loan through the following top banks in Pakistan.
- Allied Bank.
- UBL.
- HBL.
- Meezan bank.
- Bank Alfalah.
- MCB Bank.
- Summit Bank.
- Mobilink Microfinance Bank.
- National Bank of Pakistan.
- Standard Chartered.
Nearly all banks offer business loan in Pakistan with their respective loan terms.
Which government programs offer business loans in Pakistan?
- PMYB ALS Program: The Prime Minister’s Youth Business & Agriculture Loan Scheme offers financial assistance for agriculture activity and aims to inspire youth in Pakistan.
- PMKJ-YES Program: To support youth entrepreneurship, the Kamyab Jawan Scheme provides loans ranging from 5 Lakh to 75 Lakh rupees in Pakistan.
- PPAF Interest-free Loan Program: To uplift marginalized communities in society, the Pakistan Poverty Alleviation Fund offers interest-free business loans.
Which non-profit organizations provide interest-free business loans in Pakistan?
- Alkhidmat Foundation: Alkhidmat is a non-profit organization that provides interest-free business loans to support young entrepreneurs seeking to establish their businesses and small business owners who wish to expand or grow their existing businesses. The foundation also designs skills and training workshops to strengthen the youth in Pakistan.
- Akhuwat Foundation: To enhance employability, Akhuwat offers business loans without charging any interest. These loans are provided to individuals who don’t have enough resources to grow or expand their businesses. The loans assist entrepreneurs or business owners in investing in their businesses without missing opportunities.
- Kashf Foundation: The Kashf Foundation also provides microfinance interest-free business loans to enhance employment, especially among youth and women. Kashf Foundation also mentorship and various training programs to spread awareness among young entrepreneurs in Pakistan.
What is the amount of business loans offered by Standard Chartered Bank in Pakistan?
- Standard Chartered Bank: Standard Chartered is a well-known Bank in Pakistan that provides microfinance business loans, offering a maximum of 50 Million rupees.
- Meezan Bank: Meezan Bank offers business loans of up to 25 Million rupees for businesses and entrepreneurs looking to fund their expansion, working capital, and other operational needs.
- Bank Alfalah: With a maximum loan amount of 15 million rupees, Bank Alfalah provides business loans in Pakistan to facilitate the growth and development of Enterprises.
What are the pros of accessing a business loan in Pakistan?
- Capital for Expansion: Getting a business loan can assist individuals in investing in new projects, launching marketing initiatives, and implementing innovations, which are necessary for the development and progress of the business.
- Quick access to funds: When facing unforeseen financial situations in business, quick access to business loans allows you to cover expected expenses, helping to secure and sustain your business.
- Interest-free Business Loans: Several non-profit organizations in Pakistan offer interest-free business loans for underprivileged individuals and business owners lacking financial resources, allowing them to repay the loan without incurring any interest.
What are the cons of accessing a business loan in Pakistan?
- Collateral Requirements: Accessing a business loan in Pakistan can be risky, as many lenders require collateral. If you fail to repay the loan, the collateral can be seized by the lender.
- Interest Rates: One of the major drawbacks of accessing a business loan in Pakistan is the incurring interest. You have to be cautious in considering this point as it can increase the overall rep payment amount.
- Dependency on Loans: Relying too heavily on lending services can lead to financial debt, which could be a downturn for your business.