MUDRA loan expansion in Budget for homestays create Rs 1,500 cr opportunity for small businesses: SBI

New Delhi [India], February 3 (ANI): The expansion of MUDRA loans for homestays has opened a significant opportunity for small businesses in the tourism sector, with potential loans amounting to Rs 1,500 crore under the Shishu category, according to a recent report by the State Bank of India (SBI).

The report highlighted that the demand for homestays has risen sharply due to an increasing influx of tourists, with an estimated requirement of around 3 million homestays across the country. The extension of MUDRA loans is expected to support this growing sector by providing financial assistance to small entrepreneurs, helping them establish and expand their homestay businesses.

It said "With the extension of MUDRA loans for Homestays, an opportunity of approximately Rs 1,500 crores of loans under the Shishu category has been created".

Under the Pradhan Mantri MUDRA Yojana (PMMY), small entrepreneurs can avail loans under three categories--Shishu (up to Rs 50,000), Kishore (Rs 50,001 to Rs 5 lakh), and Tarun (Rs 5 lakh to Rs 10 lakh).

Currently, the initiative MUDRA loans for Homestays focuses on the Shishu category, with an estimated Rs 1,500 crore in loan opportunities. However, the report also noted that if extended to the Kishore category, the potential loan disbursal could reach approximately Rs 8,250 crore.

The government's initiative aims to boost the local hospitality sector by fostering entrepreneurship in tourism-related businesses. This will not only enhance the availability of accommodations but also contribute to economic growth by generating employment in rural and semi-urban areas.

The Union Budget has also outlined various measures to promote employment-driven growth, including comprehensive skill development programs for youth. Specialized training at Institutes of Hospitality Management will equip individuals with the necessary expertise to manage and operate homestays efficiently.

Furthermore, the government is focusing on improving accessibility to major tourist destinations by enhancing transport connectivity.

These initiatives are expected to strengthen India's tourism infrastructure, providing better facilities for travelers while empowering local communities through increased economic opportunities.

The expansion of MUDRA loans for homestays marks a crucial step toward making India a more tourist-friendly destination while supporting small businesses and job creation. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)