Expansion of Mudra loan in the budget for home-stay, SBI said – 1500 crore will create opportunity
New Delhi| According to a recent report by State Bank of India (SBI), expansion of Mudra loans for homestays will provide an important opportunity to small businesses in the tourism sector. A potential loan of Rs 1,500 crore has been announced by the government under the Shishu category in Budget 2025-26.
The report states that due to the increasing influx of tourists, the demand for homestays has increased rapidly. There is an estimated need for about 3 million homestays nationwide. The expansion of Mudra loans is expected to help this growing sector by providing financial assistance to small entrepreneurs. This loan will help them set up and expand their homestay businesses. “With the expansion of Mudra loans for homestays, an opportunity has arisen for loans worth about Rs 1,500 crore under the Shishu category”, SBI said
Under Pradhan Mantri Mudra Yojana (PMMY) small entrepreneurs can take 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 Mudra Loan Initiative for Homestay focuses on the Shishu category, with loan opportunities estimated at Rs 1,500 crore available. However, the report also said that if it is extended to the juvenile category, the potential loan disbursement figure could reach around Rs 8,250 crore.
The government initiative aims to boost the local hospitality sector by promoting entrepreneurship in tourism related businesses. This will not only increase the availability of housing but will also contribute to economic development by creating employment in rural and semi-urban areas. In addition, the Government is focusing on improving access to major tourist destinations by increasing transport links.
According to SBI, “These initiatives are expected to strengthen India’s tourism infrastructure, provide better amenities to travelers and empower local communities through increased economic opportunities”. The expansion of Mudra loans for homestays is an important step towards making India a more tourist-friendly destination and supporting small businesses and job creation
