Interest subvention for hospitality sector

Shimla, July 7

The state government has introduced a scheme for interest subvention on working capital loan to help out the struggling hospitality sector in the times of coronavirus. Director Tourism and Civil Aviation Yunus said the rate of interest had been fixed at a maximum of 11 per cent per annum on a monthly compounded basis. The registered tourism units can avail the scheme till March next year.

Under the scheme, the loan amount would be determined on the basis of the unit’s GST payment history. If a registered unit has paid an average GST of up to Rs 1 crore per year, it would be entitled for a working capital loan of Rs 50 lakh. Similarly, the units having made GST payments between Rs 1 and Rs 3 crore and more than Rs 3 crore would be entitled to a loan worth Rs 75 lakh and Rs 1 crore, respectively. Smaller units not under GST could avail a maximum loan of Rs 15 lakh.

Yunus said the loan would have to be repaid in four years, with the first two years of interest subvention. In the first two years, 50 per cent of the interest amount will be reimbursed by the state government at the end of the year; in the remaining two years, interest will be paid by the borrower himself.

Yunus said those interested could apply for the loan with the district tourism development officer. Under this scheme, loan could be availed from state cooperative banks like HP State Cooperative Bank, Kangra Central Cooperative Bank and Jogindra Central Cooperative Bank and Commercial Banks. — TNS

ABOUT THE SCHEME

• Under the scheme, the loan amount the be determined on the basis of the unit’s GST payment history.
• If a registered unit has paid an average GST of up to Rs1 crore per year, it will be entitled for a working capital loan of Rs 50 lakh.
• Similarly, the units having made GST payments between Rs1 and Rs 3 crore and more than Rs 3 crore will be entitled to a loan of Rs 75 lakh and Rs 1 crore, respectively.

Join Whatsapp Channel of The Tribune for latest updates.