Personal Guarantee of CM Punjab Asaan Karobar Card

The Personal Guarantee of CM Punjab Asaan Karobar Card is required for the easy access to interest-free loans provided to small business owners and entrepreneurs in Punjab. This initiative, backed by the Chief Minister of Punjab, ensures that startups and small enterprises can secure funding without the hassle of extensive collateral requirements. By offering a reliable financial safety net, the program aims to empower local businesses, drive economic growth, and create new job opportunities across the province. The loan can be applied on the official portal of the scheme.

Personal Guarantee of Asaan Karobar Card

The Asaan Karobar Card Personal Guarantee is required from the applicant with the following terms and conditions:

THIS GUARANTEE (“Guarantee“) is made in consideration of the Bank of Punjab (the “Creditor“) having, at my/our request, entered into an agreement dated as mentioned on (hereinafter referred to as the “Agreement“) with THE APPLICANT NAME (hereinafter referred to as the “Customer“), whereby I/we, the undersigned, hereby irrevocably and unconditionally guarantee to repay you as per the due date mentioned in the written demand of all sums due and payable to the Creditor by the Customer under the said Agreement, provided that the total amount recoverable from me/us under this Guarantee shall not, at any time, exceed the sum of Rs. 1,000,000 plus service charges and all other sum due under the said Agreement.

I/we specifically further agree as follows:

1. I/we acknowledge that my/our liability under this Guarantee shall be that of principal debtor and the Creditor may hold me/us directly responsible for the liabilities of the Customer under the Agreement, without first pursuing remedies against the Customer.
2. This Guarantee shall continue to remain binding and in full force until the Customer receives written notice of discontinuance thereof. Notwithstanding such notice, I/we shall continue to remain liable to the Creditor for all obligations and liabilities incurred by Customer, prior to Customer’s receipt of such notice.
3. This Guarantee shall not be discharged or prejudiced by any partial payments, settlement of accounts, existence of credit balance in Customer’s account at any time or by discharges of the Customer by operation of law or for any other reason.
4. The Creditor may, without prior notice to me/us at its sole discretion, grant to the Customer extension of time, indulgences, or make or accept any other arrangement or composition with Customer in respect of any payment hereby guaranteed and also vary, renew, release or in any way deal with any securities or rights it holds, without affecting my/our liability under this Guarantee and/or Agreement.
5. The insolvency, bankruptcy or liquidation of the Customer shall not affect my/our obligations and/or liability under this Guarantee which shall remain binding until all amounts due by the Customer under the Agreement have been paid in full by the said Customer.
6. In the event of Customer’s bankruptcy, insolvency or liquidation, the Creditor shall have the right to claim the entire amount due from the Customer from me/us, and my/our liability shall continue until the Creditor has received full payment.
7. Any account settled between Creditor and the Customer, or any demand by Creditor on the Customer or his agent, or any judgment or award obtained by Creditor against the Customer, or any statement from Creditor stating the amount due to Creditor at any time form the Customer, shall be accepted by me/us as conclusive evidence of my/our liability under this Guarantee and shall be binding on me/us. I/we hereby waive all rights to question and challenge the same.
8. Any change in the constitution of the Customer or myself/ourselves, whether by reorganization, partnership or otherwise shall not affect my/our liability hereunder.
9. In the event of my/our death, bankruptcy, liquidation or insolvency this Guarantee shall continue to be binding and operative against my/our successors-in-interest, heirs, legal representatives and assigns until all money due to Creditor from the Customer have been paid.
10. Where the Customer purports to act on behalf of another person, corporation or company, Creditor shall not be obligated to verify Customer’s authority. My/our liability towards the Creditor under this Guarantee shall remain unaffected by any lack of authority on Customer’s part.
11. Until all moneys and liabilities due from or incurred by the Customer have been paid or discharged to the Creditor, I/we shall not, either by paying off any sum recoverable hereunder or by any other means or ground, claim any set-off or counterclaim against the Customer in respect of any liability on my/our part or claim or prove in competition with the Creditor in any bankruptcy or insolvency proceedings of the Customer.
12. In the event this Guarantee ceases to be a continuing Guarantee, for any reason whatsoever, the Creditor may open a new account or continue any existing account with the Customer, and no money paid into any such account by or on behalf of the Customer and subsequently withdrawn shall affect or diminish my/our liability under this Guarantee.
13. Any demand for payment or notice under this Guarantee shall be deemed to have been duly served if sent by registered post or delivered by hand to the last known address of the person to whom or to whose personal representatives such demand or notice is to be made or given. Such notice shall be considered received after two (02) days of posting if sent by registered mail.
14. This Guarantee shall be governed by and construed in accordance with the Laws of Islamic Republic of Pakistan.

IN WITNESS WHEREOF, I/we have executed this personal Guarantee on this Friday of 7 March, 2025.

Note: The Perosnal Guarntee of Asaan Karobar Card is compulsory and to be accepted by the applicant and digitally verified through OTP on the registered mobile number with a digital timestamp in the login of the CM Punjab Asaan Karobar Portal.

Step-by-Step Guide to Apply for CM Punjab Asaan Karobar Card Scheme, Click Here

Summary of the Personal Guarantee CM Punjab Karobar Card

The Personal Guarantee Karobar Card of an Applicant is a legal commitment by the applicant to repay the Bank of Punjab the approved amount of loan up to Rs. 1,00,000 plus service charges under the specified agreement. It establishes the guarantor as the principal debtor, making him directly responsible for the liabilities of the customer without requiring the bank to pursue the customer first. The guarantee remains in force until all obligations are settled, regardless of insolvency, bankruptcy, or any changes in the legal status of the customer or guarantor. The bank retains the right to modify payment terms, grant extensions, or make settlements without affecting the guarantor’s liability. Additionally, all notices or demands sent to the guarantor’s last known address will be considered legally valid after two days of posting states Personal Guarantee of Asaan Karobar Card.

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