Himachal Pradesh Government issues Revised Interest Subvention Scheme on Working Capital Loan for Hospitality Industry

Jun 23, 2021 | by TeamLease RegTech Legal Research Team

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EHS ComplianceThe Department of Tourism and Civil Aviation, Himachal Pradesh on February 17, 2021 has issued the “Revised Interest Subvention Scheme on Working Capital Loan for Hospitality Industry” in order to promote/strengthen the Tourism Sector in the State during Corona Pandemic. The scheme will also be applicable to the borrowers who already took the benefit under Interest Subvention Scheme, 2020. 

The following provisions covered under the Revised Interest Subvention Scheme on Working Capital Loan for Hospitality Industry are as under: -

• Need for the Interest Subvention on Working Capital Loan: -

In Hospitality Sector, more than 60% cost of running business is fixed. 

• Mode of Interest Subvention on working Capital Loan: -

The Scheme for interest subvention on working capital loan for tourism sector to support business investment and economic growth over the short-term, by providing loan for working capital for immediate needs. 

• Rate of Interest: -

The rate of interest to be charges will be a maximum of 11% p.a. (on monthly compounded basis). 

• Loan Period 

The Laon period shall be of 5years. 

• Eligibility Criteria

• The working capital loan is intended only for Tourism Units for meeting their daily operational needs.  

• Tourism Unit should be registered with the department of Tourism and Civil Aviation, HP

• Tourism Unit must continue to follow the health and cleanliness guidelines prescribed by the Govt. 

• Unit Tourism should not be a defaulter, insolvent, blacklisted, etc. 

• The scheme shall cover registered tourism units. 

[Notification No- TSM-C(13)-1/2020-Loose]


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