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Travel & Tourism; Housing & Shelter

Deen Dayal Upadhyaya Grah Aawas (Home-Stay) Vikas Yojana

The scheme aims to promote rural and eco-tourism by encouraging local residents to develop homestay facilities, thereby generating employment and income opportunities within the state.

Authority

State/ UT

Region

Uttarakhand

Status

Verified 2026

Updated

March 2026

What you get

- There is a provision for financial assistance to permanent residents/native of the state who take a loan for the construction of homestays. | - In hilly areas, a subsidy of up to 50% of the project cost, subject to a maximum of ₹15.00 lakh, is provided along with an interest grant of up to ₹1.50 lakh for the first five years. | - In plain areas, a subsidy of up to 25% of the project cost, subject to a maximum of ₹7.50 lakh, is provided along with an interest grant of ₹1.00 lakh for the first five years. The beneficiary’s contribution at the time of availing the loan must be 12.5%. | - The subsidy is applicable only when the loan is taken. | - In addition to the construction of new houses, funds/subsidy are also provided for the upgradation of old buildings, including their extension, renovation, improvement, and construction of toilets, as mentioned above.

Who can apply

This benefit is provided as a subsidy for the construction of homestays across the state of Uttarakhand, excluding areas under Municipal Corporations and Municipalities.; The applicant must be a native of Uttarakhand.; The building owner, who resides in the building with their family, may construct a minimum of one and a maximum of six guest rooms.; Upon construction of a new homestay or renovation of an existing one, the property must be registered with the Uttarakhand Tourism Development Council.; Preference will be given to buildings constructed or developed in the traditional hill-style architecture.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Who is eligible to apply for this scheme?

Permanent/original residents of Uttarakhand who own a building in non-municipal areas and reside there with their family are eligible to apply.

Can applicants construct new homestays or renovate existing ones?

Yes, the scheme provides funds/subsidy for both construction of new homestays and upgradation, extension, renovation, or improvement of existing buildings, including toilet construction.

What is the minimum and maximum number of guest rooms allowed?

Applicants can construct a minimum of one and a maximum of six guest rooms.

Is there a preference for a particular building style?

Preference is given to buildings constructed or developed in traditional hill-style architecture.

Is the applicant required to contribute any amount?

Yes, the beneficiary must contribute 12.5% of the project cost at the time of taking the loan.

Where can applicants submit their application?

Applications must be submitted online at https://msy.uk.gov.in/frontend/web/index.php

What is the process after submitting the online application?

The application is forwarded to the District Tourism Development Officer (DTDO). A committee chaired by the District Magistrate schedules an interview for the applicant to review the proposal.

How is the loan processed?

Once the committee approves the proposal, it is sent online to the bank chosen by the applicant. The bank then initiates the loan approval process and disburses the amount if approved.