Loan for Hospitality Industry
We offer loans for the hospitality industry to financially support hospitality businesses like hotels, resorts & restaurant owners to improve their infrastructure, expansion, acquisitions, and construction of facilities.
The hospitality industry is an important part of a country’s infrastructure. This showcases the facilities for local as well as foreign tourists. In the last few years, this industry has grown manifold, requiring an infusion of more funds to strengthen the businesses.
If you’re in the hospitality industry and looking to boost your business or expand the facility, then these loans can help you a lot.
It can be beneficial for businesses like:
The hospitality loans can be utilized for
Benefits of a Loan for Your Hospitality Business
- Growth & Expansion: Access the capital needed for expanding your business, launching new locations, or upgrading your property.
- Operational Efficiency: Streamline processes by investing in new technologies, equipment, and systems.
- Cash Flow Management: Smooth out seasonal fluctuations and unexpected downturns by having ready access to working capital.
- Competitive Edge: Stay ahead of competitors by keeping up with industry trends.
Why Choose Our Hospitality Financing?
Frequently Asked Questions
This kind of loan is provided to businesses involved in the hospitality industry, such as hotels, resorts, restaurants, amusement parks, food courts, etc., to develop the infrastructure and fulfil their working capital requirements.
Yes, hotels, including resorts and restaurants, can get this loan. This loan can be raised to construct a new hotel or renovate an existing one. One can apply for this loan for construction/renovation and the working capital requirement to run the hotel.
The tenor depends upon how the loan is used. Generally, if a loan is taken for the construction of the hotel, then a ten-year tenor is provided. Alternatively, a loan for working capital is given for a five- to seven-year tenor.
The loans for resorts are provided to cover the cost of construction along with funds required to run the resort. As a general rule, 75% of the loan is provided for the development and run the resort, and the balance 25% needs to be invested by the borrower.
Any hotel or resort can get a loan without any special permission or license. However, they require the general licenses required to run the business
First, the borrower is required to prepare a project report or construction cost report with the help of an engineer or CA, and secondly, needs to submit it with income & KYC documents. He also needs to submit all necessary project approvals with the application form.
Working capital finance is essential for hotels and restaurants because this fund resolves and manages daily expenses, maintains inventory, handles seasonal changes, improves customer experience, and covers delayed payments. It ensures smooth operations and financial stability of the business.
