Ministry of Tourism Announces a Scheme of Interest Subsidy on Hotel Loans

Published on June 2, 2010 by News Desk   ·   106 Comments  Print This Post

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Delhi,,

In view of the forthcoming Commonwealth Games, Delhi – 2010, and in order to encourage growth of budget accommodation of the Approved / Licensed Guest Houses in the NCT of Delhi, the Ministry of Tourism has introduced a “Interest Subsidy Scheme for the Upgradation of Guest Houses” in the NCT of Delhi.

The Scheme would be effective from immediate effect & the Scheme would apply to all Licensed Guest Houses in the NCT of Delhi which have been approved by the Department of Tourism, Govt. of Delhi / Ministry of Tourism (MOT), Govt. of India as per the schemes for Approval of Guest Houses. The Interest Subsidy would be applicable for loans taken to upgrade the existing facilities which are allowed as per the prevailing civic bye-laws of DDA / MCD / NDMC etc. In order to be eligible for the Interest Subsidy, the permissions, if any, of the concerned civic authorities on civil works to be undertaken (wherever applicable) should be obtained by the Guest House.

The Interest Subsidy would be applicable to loans for upgradation of rooms (flooring, furniture like bed, table, chair, luggage rack / cupboard, bathroom fixtures including WC and wash basin, geyser, RO machine for drinking water, A/C, electric light fittings), common areas like lobby / reception area, façade, and infrastructure development like supply of electricity, water and installation of solar heating and lighting etc. The Guest House would require to incur a minimum of 7.5 % of the loan amount availed from the Financial Institution towards the improvement / beautification of façade / outside improvements, synages, lighting etc. as per the permissible norms.

Since the proposed Interest Subsidy scheme is meant for the upgradation of Guest Houses for the Commonwealth Games 2010, the subsidy will be applicable for loans that are sanctioned and first installment released up to 31.07.2010 with the upgradation works to be completed by 20.09.2010. A certificate of completion of the upgradation works is to be furnished by the FI. The subsidy will be released on quarterly basis by the Ministry of Tourism directly to the Financial Institution / scheduled bank on submission of claim in the prescribed manner.

Interest Subsidy proposals will take into account number of rooms as licensed by MCD / Delhi Police. MOT would provide Interest Subsidy on loan of maximum Rs. 2 lakh per room basis. Guest House may seek higher loan but the payment of Interest Subsidy would be calculated at Rs. 2 lakh per room subject to an overall upper limit of Rs. 60 lakh per Guest House.

The scheme will be operated through TFCI, Scheduled and Nationalized Banks. The interest on loan would be charged as per policy of the Financial Institution (FI) and the rate of interest charged by the FI and the terms and conditions of the loan agreement between the lender and the borrower would be as per the Government policy.

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