Product Details
A special scheme that provides hassle-free loans for converting residential properties into tourist guest houses (only for renovation/improvement).
Eligibility
- The borrower must be the owner of the house, it should be located at an appropriate place, and the access road must be motorable. The age of the house should not exceed 15 years.
- Proper registration with the Tourism Department of Jammu and Kashmir Government and permission from the municipal/concerned authority for conversion/renovation/improvement, where required. - The guest house must be managed by the owner himself. - The potential borrower must present a proper estimate/project report for the proposed guest house renovation/improvement plan for the assessment of its feasibility.
- Renovation/improvement should be completed within three months from the date of disbursement. - Existing hotels/guest houses already registered with the Tourism Department are not covered under this scheme.
Loan Amount
Maximum: 
50,000/= per room and 10.00 lakh per guest house.
Components of Project Cost
The cost of renovation, painting, bedding, furniture, dining table, flooring, crockery, cutlery, color television, etc., required for the renovation/improvement of the house.
Security
- Primary: Hypothecation of all furniture fittings and other movable property of the guest house.
- Collateral: 2.00 Lakh or below: Third-party guarantee from two persons who have sufficient means and can bear the responsibility. 2.00 Lakh or above: Mortgage of house property/guest house.
Margin
30%
