Govt offers interest subsidy from 3 to 5 percent for establishing and upgrading Home Stays

SHIMLA 18 September, 2025

• Govt approves ‘CM Tourism Startup Scheme in Hospitality Industry’ to boost tourism and employment

To promote tourism and create self-employment opportunities in Himachal Pradesh, the State Government under the leadership of Chief Minister Thakur Sukhvinder Singh Sukhu has approved the launch of an innovative scheme, ‘Chief Minister Tourism Startup Scheme in Hospitality Industry’. Under this scheme, the State Government will provide financial relief on loans taken for establishing new tourism units, such as homestays, as well as for the expansion and upgradation of existing units. The Government will extend an interest subsidy of 3 percent in urban areas, 4 percent in rural areas, and 5 percent in tribal areas on loans up to Rs. 2 crore, for a maximum period of three years from the date of loan disbursement. This facility will be available only to Bonafide Himachalis.
Highlighting the importance of the initiative, the spokesperson of the state government said that homestays play a vital role in attracting tourists by offering affordable alternatives to expensive hotels while encouraging longer stays in rural areas. The scheme aims to tap the immense tourism potential of culturally rich rural regions, thereby creating self-employment avenues and strengthening the State’s economy. The initiative is expected to open new avenues of self-employment for Himachalis and generate robust economic activities across the State.
Homestays also ensure authentic, sustainable travel experiences by allowing visitors to engage directly with local traditions, cuisine, and customs. Affordable stays make destinations accessible to budget travelers, backpackers, and students while ensuring that local communities benefit directly from tourism.
He added that the scheme will significantly boost urban, rural and offbeat tourism, while also formalizing the homestay economy through startups and improving quality standards in hospitality ventures. “Himachal Pradesh, with its clean environment, rivers, forests, sacred shrines, and picturesque valleys, continues to be a bewitching destination for visitors. The tourism and hospitality sector contributes 7.78 percent to the State’s Gross Domestic Product (Economic Survey 2024-25). This scheme reflects the Government’s commitment to promoting sustainable tourism by engaging private entrepreneurs in developing tourism infrastructure without disturbing the ecological balance,” the spokesperson said.