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Himachal Govt. introduces scheme for Interest Subvention on Working Capital Loan for Hospitality Sector

  • Registered Tourism Units are eligible to avail the benefit under the scheme

Director Tourism and Civil Aviation, Yunus said here today that in order to strengthen the Tourism sector and to provide relief to the tourism sector in the State in view of the COVID-19 pandemic, the State Government has introduced a scheme for Interest Subvention on Working Capital Loan for Hospitality Sector.

Yunus said that the Government has notified the scheme for Tourism sector for providing loan to working capital for immediate needs. The rate of interest fixed is maximum 11 percent per annum on monthly compounded basis.

He said that the interested registered Tourism Units can avail the benefit of the scheme till 31st March, 2021 from the date of notification of this scheme.

He stated that the loan shall be repaid in four years including initially two years of interest subvention and also includes initial one year of moratorium. In the first two years of the repayment of the loan, 50 percent of the interest amount will be reimbursed by the State Government at the end of these respective years, whereas the remaining two years interest will be paid by the borrower himself.

Yunus further said that the interested Tourism Unit Operators may apply for working capital loan with District Tourism Development Officer in the State and the concerned Deputy Director/DTDO/ATDO would sponsor the case to the Bank for loan. Under this scheme they may avail the facility of loan from State Cooperative Banks viz: HP State Cooperative Bank, Kangra Central Cooperative Bank and Jogindra Central Cooperative Bank and Commercial Banks.

The criteria of eligibility as well as magnitude if financing being provided would be based on the Unit’s GST payment history. However, for small registered Tourism Units who are not covered under GST would be eligible under the said scheme at Rs. 1.5 lakhs per room subject to loan of maximum of Rs. 15 lakhs. If registered Tourism Unit has paid average GST of upto rupees one crore per year , then he would be entitled for working capital loan of Rs. 50 lakhs and for GST payment of above rupees one crore and upto rupees three crores, the Tourism Unit can avail loan of Rs 75 lakhs while above Rs. three crores, the Tourism Units can avail loan of Rs. 100 lakhs.