Himachal to Offer 3–5% Interest Subsidy on Homestay Loans to Boost Tourism

To promote tourism and create self-employment opportunities, the Himachal Pradesh government has approved a new scheme that will provide financial relief on loans taken to set up new tourism units such as homestays, as well as for the expansion and upgradation of existing ventures.

Under the Chief Minister Tourism Startup Scheme in the Hospitality Sector, the government will offer interest subsidies on loans of up to ₹2 crore: 3% in urban areas, 4% in rural areas, and 5% in tribal areas. The subsidy will be available for a maximum period of three years from the date of loan disbursement, and will apply only to bona fide Himachalis.

Highlighting the importance of the initiative, a government spokesperson said that homestays play a vital role in attracting visitors by offering affordable alternatives to expensive hotels and encouraging longer stays in rural areas. The scheme aims to tap into the vast tourism potential of culturally rich villages, generating self-employment and strengthening the state’s economy.

The spokesperson added that homestays also ensure an authentic and sustainable travel experience by allowing visitors to directly engage with local traditions, cuisines, and customs.

According to the government, the scheme will significantly promote urban, rural, and offbeat tourism, while formalizing the homestay economy through startups and improving quality standards in the hospitality sector.

“Tourism and hospitality contribute 7.78% to the state’s Gross Domestic Product (Economic Survey 2024–25). This scheme reflects the government’s commitment to sustainable tourism by involving private entrepreneurs in the development of tourism infrastructure, without disturbing ecological balance,” the spokesperson said.