West Bengal Interest Subsidy on Term Loan for Tourism — Up to ₹2.1Cr

The Interest Subsidy on Term Loan is a tourism-specific sub-scheme of the West Bengal Incentive Scheme, administered by the Department of Tourism, Government of West Bengal. It has been in force since February 22, 2021, and its purpose is to bring down the cost of borrowing for tourism businesses operating in the state. Instead of paying out a lump sum, the government reimburses a share of the interest a unit pays on a term loan raised from a bank or financial institution.

The logic behind that design is simple. Term loans are how most hotels, resorts and tourism assets get built, and the interest bill on those loans runs for years before a venture stabilises. When the state absorbs between 50% and 75% of that interest — the exact share depends on where the project sits — the effective cost of capital falls, and bank financing becomes far easier to service for both new ventures and existing units planning to expand.

Eligibility is deliberately wide. New tourism projects qualify, and so do expansion projects at units that already exist. Support extends to private-sector players, co-operatives and joint-sector ventures, and even to companies and undertakings that the State Government owns or manages. The broader intent is to pull investment into West Bengal's tourism infrastructure while encouraging self-employment and creating jobs in the state.

• Interest subsidy of 50%–75% on term loan interest, based on project location
• Annual cap of ₹25 lakh in Group 'A'–'D' areas and ₹30 lakh in Special Areas
• Benefit runs for 5 years in Group 'A'/'B' areas and 7 years in Group 'C'/'D' and Special Areas
• Open to new tourism projects, expansion units and qualifying hotel units from 2015–2020
• Overall support listed at up to ₹2.1 crore
• Registrations, applications and certificates handled online via the Shilpasathi portal
• Application deadline: 31 December 2025

Both new tourism projects and expansion projects at existing units are in scope, provided the unit was set up on or after February 22, 2021.

• Hotel units from the earlier window: hotels that began commercial operations between January 7, 2015 and December 31, 2020 are also eligible, but only where the absence of a bar stopped them from applying under the previous 2015 scheme.
• Ownership types covered: private sector, co-operative sector and joint sector units, along with companies and undertakings owned or managed by the State Government.
• Project documentation: the project must be backed by a detailed feasibility report or a project report prepared for the purpose.
• Institutional approval: the project must have been approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution.
• Certificates: the unit must hold a Registration Certificate, a Date of Commencement Certificate and an Eligibility Certificate issued by the West Bengal Tourism Development Corporation Limited, granted once the arrangements are found satisfactory.

West Bengal Interest Subsidy on Term Loan for Tourism — Up to ₹2.1Cr is open to startups at any stage. It is open to startups registered anywhere in India.

The most recent application window for West Bengal Interest Subsidy on Term Loan for Tourism — Up to ₹2.1Cr closed on 31 Dec 2025. Many programmes run repeat cohorts, so it is worth checking the official site for the next round.

The scheme reimburses part of the interest a unit pays on its term loan. Both the percentage and the benefit period depend on the location of the project:

• Group 'A' and 'B' areas: 50% of the annual interest liability, capped at ₹25,00,000 per year, for 5 years.
• Group 'C' and 'D' areas: 60% of the annual interest liability, capped at ₹25,00,000 per year, for 7 years.
• Special Areas: 75% of the annual interest liability, capped at ₹30,00,000 per year, for 7 years.

The overall value of the support is listed as up to ₹2.1 crore.

Payouts happen once a year. Before each release, the lending bank or financial institution must confirm that the unit cleared its interest on the due dates. That certificate-based cycle keeps support flowing consistently across the full benefit period.

One exclusion applies: the subsidy is not paid on term loans taken for second-hand plant and machinery, or for hire-purchase equipment.

West Bengal Interest Subsidy on Term Loan for Tourism — Up to ₹2.1Cr is offered by Department of Tourism, Government of West Bengal, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

There is no competitive pitch or jury round here — assessment is administrative. Once an application is filed on the Shilpasathi portal, the West Bengal Tourism Development Corporation Limited scrutinises the application and the papers attached to it. Officers verify the detailed feasibility report, check that the project has been approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution, and confirm that the unit satisfies every eligibility condition.

The review then moves through the certificate chain: first a Registration Certificate, then a Date of Commencement Certificate, and finally an Eligibility Certificate. Only a unit holding all three can apply for the interest subsidy itself, using the dedicated online form.

After that incentive application is submitted, the competent authority grants final approval, and the subsidy is disbursed.

Before you apply to West Bengal Interest Subsidy on Term Loan for Tourism — Up to ₹2.1Cr, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

West Bengal Interest Subsidy on Term Loan for Tourism — Up to ₹2.1Cr is best suited for startups in India seeking non-dilutive funding of ₹2.1Cr. If that describes your startup, review the eligibility criteria above before applying.