Hotel/ Mobile Canteen Loan Scheme

The medium standard hotels proposed in state capital, districts and taluk headquarters and important tourist locations within the state are eligible for financial assistance. The existing hotels going in for expansion/ renovation are also eligible for assistance. The hotel should have boarding, lodging and restaurant facilities and building plans approved by the local authorities. Hotels proposed as per the specification of Tourism department, Government of Karnataka, are eligible for incentives as per the Government tourism policy. The maximum loan assistance is Rs. 240.00 lakhs for private and public limited companies and Rs. 120.00 lakhs for proprietary are partnership concerns. The debt equity ratio of 2:1 for loan above Rs. 10.00 lakhs and 3:1 for loans upto Rs. 10.00 lakhs will be applied to determine the extent of loan. Normal security margin retained caries from 30 to 40%. Mobile canteens/ catering are also considered for assistance subject to eligibility and providing of 100% collateral security.