Business loans are one of the most popular ways to fund your business, especially when you’re just starting or need extra capital to finance an expansion.
Many banks and private lenders, offer different kinds of business loans in Pakistan, that you can apply for online and get approved within days.
It’s important to carefully research your options before applying for a business loan in Pakistan so you know which business loan fits your company best in terms of interest rates, repayment period, and security requirements.
In this article, we have enlisted top welfare organizations and banks that provide small business loans in Pakistan without collateral or at minimum requirements. So, let’s explore business loan opportunities without further delay!
Recommended Reading: Business Loan In Pakistan | Loan For Business In Pakistan Without Interest
Business Loan In Pakistan | Small Business Loan In Pakistan Without Collateral
Table of Contents
- Business Loan In Pakistan | Small Business Loan In Pakistan Without Collateral
- What Type Of Business Financing Is Right For Me?
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Government Loans For Small Business In Pakistan
In Pakistan, various government initiatives have been established to provide financial support to small businesses through loan programs e.g.
- Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS)
- Kamyab Jawan Program | Prime Minister’s Youth Entrepreneurship Scheme (YES).
These initiatives offer entrepreneurs the opportunity to secure loans ranging from PKR 5 Lakh to 75 Lakh (in some cases PKR 25 Million i.e. PKR 2.5 Crores), catering to a diverse spectrum of business needs.
The repayment tenure for these loans extends up to 10 years, providing flexibility for business owners to manage their financial obligations effectively.
These programs empower and encourage the growth of small businesses by providing accessible funding solutions that can pave the way for long-term success.
Recommended Reading: How To Get SME Loan In Pakistan (Government+Private Sector)
How To Apply For Government Loans For Small Businesses
Here is how you can apply for small business loans through Government Programs:
| How to Apply | Details |
|---|---|
| Apply through the Government’s Portal: | Click on the link to access the application portal. |
| Select Bank: | Choose “Meezan Bank” from the list of banks. |
| Initial Screening: | Meezan Bank will start screening the provided information. |
| Evaluation: | Bank evaluates entrepreneurial potential based on financing policy. |
| Interview and Assessment: | Applicants will be invited for a case-by-case interview and assessment. |
| Verification: | The bank conducts verification for assessment and ongoing monitoring. |
| Decision: | Approval or rejection based on eligibility and policy communicated via SMS. |
| Financing Provided: | Successful applicants receive financing for asset/inventory purchases as per Shariah guidelines. |
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Top 3 Welfare Organizations In Pakistan To Get Small Business Loan In Pakistan
| Loan Provider | Loan Amount | Key Services | Repayment Period |
|---|---|---|---|
| Akhuwat Foundation | Up to Rs. 500,000 | Interest-free loans, financial literacy, and training | 13 to 60 months |
| Pakistan Poverty Alleviation Fund (PPAF) | Rs. 450,000 to Rs. 500,000 | Interest-free loans, training, capacity building, access to markets | 13 to 48 months |
| Alkhidmat Foundation | Rs. 450,000 to Rs. 500,000 | Small business loans, training, skill development, mentorship | 13 to 48 months |
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Best Banks To Get Loan For Business In Pakistan
Many banks in Pakistan provide loans for small businesses. But, we have shortlisted our top 3 banks to get loans for business in Pakistan. Here are the details:
| Bank | Maximum Loan Amount | Age Limit | Key Features |
|---|---|---|---|
| Standard Chartered: | Up to Rs. 50 Million | 45 to 60 years | Substantial financial assistance for businesses |
| Meezan Bank: | Up to Rs. 15 Million (SMEs) | Up to 60 years | Support for SMEs and Medium Enterprises (up to Rs. 25 Million) |
| Bank Alfalah: | Up to Rs. 15 Million | Up to 60 years |
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What Type Of Business Financing Is Right For Me?
Before you apply for a business loan in Pakistan, it’s important to understand the different types of financing available and which one is right for your business.
The four main types of business loans are lines of credit, term loans, SBA loans, and merchant cash advances. Each has its own eligibility requirements, terms, and repayment options.
Term Loans
Term loans typically have higher rates than lines of credit but offer lower monthly payments. A business can also choose to repay a term loan in full at any time without incurring an early termination fee.
Lines of Credit
Lines of credit are generally cheaper than term loans but must be repaid on a schedule that matches the company’s operating needs.
SBA & Merchant Cash advance
A small business with little or no collateral may be eligible for an SBA or merchant cash advance if they need quick access to capital upfront.
Businesses should weigh their financial needs and look at all possible financing sources before deciding on one type of loan over another.
For more information about business finance solutions, contact our lending experts today!
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What Is A Good Credit Score?
A good credit score is essential to obtain a business loan in Pakistan. The minimum credit score required to apply for a business loan in Pakistan is 650.
To get the best interest rate on your loan, you should aim for a credit score of 700 or higher. A good credit score shows lenders that you’re a responsible borrower who is likely to repay your loan on time.
A high credit score can also help you save money on interest and get access to more favorable loan terms. If your credit score is below 650, you may still be able to get a business loan, but you’ll likely pay a higher interest rate.
How To Improve Credit Score
You can improve your credit score by paying your bills on time, maintaining a good credit history, and using various types of credit.
How Long Does It Take To Approve My Loan Application To Get Approved?
It can take up to 30 days after you have submitted your application for a business loan in Pakistan before you get a response from the lender.
Make sure that you have all of the documents required by the lender so that they can process your application as quickly as possible.
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FAQs | Small Business Loan In Pakistan
What are the Eligibility criteria for SME Business loans?
Minimum annual Income of the business. 1500,000
Minimum annual turnover Rs. 4,000,000.
How can I get a 5 lakh loan without interest in Pakistan?
An easy way to get a 5 lakh loan without interest is to apply for Akhuwat Organization loans from your nearby office.
Minimum salary to get a 5 lakh loan in Pakistan?
The minimum salary to get a 5 lakh loan is Rs.15,000/- Moreover, a credit score of 750 increases the possibility of getting a loan with low interest rates.
How much loan I can get with Rs,30,000/- salary?
To calculate the loan amount multiply your salary by 27x. e.g. with Rs,30,000/- salary, you can get 8.10 Lakhs.
Which banks in Pakistan offer small business loans with substantial financing?
Standard Chartered Bank is renowned for providing excellent small business loans, offering financing of up to PKR 50 Million for eligible businesses. They are a preferred choice due to their extensive support and financial assistance.
What is the maximum loan amount that SMEs can secure from Meezan Bank?
Meezan Bank is a reliable option for SMEs, granting loans with a maximum financing limit of PKR 25 Million. This funding can significantly aid in the growth and expansion of small and medium-sized enterprises.
How much loan support can startups and established businesses expect from Bank Alfalah?
Bank Alfalah caters to a wide range of businesses, including startups and established ventures. On average, startups and existing businesses can secure loans of up to PKR 15 Million.
What sets Standard Chartered apart as a preferred bank for small business loans?
Standard Chartered is widely considered a top choice due to its substantial loan amount of up to PKR 50 Million, making it an ideal option for businesses seeking significant financial support.
Meezan Bank’s SME and ME business loan maximum limit?
Meezan Bank caters to both Small and Medium Enterprises (SMEs).
Small Enterprises can get up to PKR 15 Million as a business loan from Meezan Bank.
While Medium Enterprises can also secure loans of up to PKR 25 Million from Meezan Bank.
Recommended Reading: Loan For Business In Pakistan Without Interest (25K-5Lakh) | Ihsaas Trust
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