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Home / Chandigarh / Himachal government announces interest subvention on working capital loan for hospitality sector

Himachal government announces interest subvention on working capital loan for hospitality sector

chandigarh Updated: Jul 07, 2020 19:08 IST
HT Correspondent
HT Correspondent
Hindustan Times/Shimla

To provide relief to the Covid-affected tourism sector, the state government has introduced a scheme for interest subvention on working capital loan for the hospitality sector, director tourism and civil aviation Yunus said on Tuesday.

Under the scheme, the maximum rate of interest is 11% per annum on compound basis. Registered tourism units can avail the scheme till March 31.

The loan will be repaid in four years, including the initial two years of interest subvention and one year of moratorium. In the first two years of the repayment of the loan, 50% of the interest will be reimbursed by the state, whereas the remaining two years of interest will be paid by the borrower himself.

Interested parties can apply for working capital loan to the district tourism development officer in the state and the concerned deputy director, district tourism development officer or assistant tribal development officer will sponsor the case.

Under this scheme, they can avail the loan facility from State Cooperative Banks, such as the HP State Cooperative Bank, Kangra Central Cooperative Bank, Jogindra Central Cooperative Bank and Commercial Banks.

The eligibility criteria as well as magnitude of financing being provided will be based on the unit’s GST payment history. However, small registered tourism units who are not covered under GST will be eligible under the said scheme at Rs 1.5 lakh per room, subject to a maximum loan of Rs 15 lakh.

If the registered tourism unit has paid an average GST up to Rs 1 crore per year, the unit will be entitled to a working capital loan of Rs 50 lakh. For GST payment of above Rs 1 crore and up to Rs 3 crore, units can avail loan of Rs 75 lakh while those who have paid GST above Rs 3 crore can avail a loan of Rs 100 lakh.

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