10 Best Yojanas for Homestay Business in India

As India’s international and domestic tourism expands, the government’s support helps homestay businesses and hosts, particularly in tribal and rural areas — thrive. These Yojanas (schemes) provide crucial financial aid, education and recognition. These schemes are so important as well as deeper dives into the top 10 opportunities available to new homestay hosts that include eligibility requirements for benefits, as well as concrete outcomes.

1. Deendayal Upadhyaya Homestay Scheme – Uttarakhand

Overview launched in the Deendayal Upadhyaya Grah Awas Yojna, Uttarakhand offers modernization and subsidies to help improve the model of homestay.

Key Features:

• Subsidy up to Rs10 lakh to convert hill homes; Rs7.5 lakh for plains.
• Subvention for interest of Rs1.5 lakh per year for five years.
• Tax exemption for SGST in the amount of Rs1.5 lakh for a period of five years.
• Training for hospitality, bathroom upgrades Furniture support.

Impact:

• 3,600 registrations; a strong increase across Uttarakhand’s hills districts.
• The goal is to stop rural migration through the generation of local income.

Ideal for Rural Uttarakhand entrepreneurs who have land that is usable as well as traditional houses.

2. Uttar Pradesh Bed & Breakfast & Homestay Policy 2025

Overview The goal is to alleviate the shortage of accommodation at tourist and pilgrimage sites .

Key Features:

• Registration is available for up to six bedrooms (max 12 beds).
• Rural registration fees: Rs500-750; urban: Rs2,000.
• Local registration based on NOC.
• Incentives to finance and conformity assistance.

Impact:

• This will increase the number of lodging options available at popular religious sites.
• Locals are empowered with new income sources under Yogi Adityanath’s plan for the state.

Ideal for Urban and rural homeowners living near temples Sufi temples or historic sites.

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3. Madhya Pradesh Responsible Tourism Homestay Schemes

Overview The Responsible Tourism Mission encourages experiences in villages through online booking integration.

Key Features:

• Different kinds of categories include: Homestay, B&B, Gramstay Farm stay.
• Registration and regulation in formal form and hospitality training.
• Promotion of markets and SME participation.

Impact:

• 241 new homesstays were inaugurated at one day.
• A 526% tourism growth since 2020.
• 10,000 women who have been trained and empowered.

The best for villages near the national park, historic sites sites, as well as pilgrimage loops within MP.

4. Assam Amar Alohi Homestay Scheme

Overview Goals to create new rural homestays and improve existing ones .

Key Features:

• For both rural units.
• Free training in hospitality, bookkeeping, marketing.
• Subsidies to cover the costs of establishment (up to 80 %).
• The official application, the promotional addition and branding for homestays.

Impact:

• Organic farming is supported as well as the production of craft products.
• Attracts visitors who come to Kaziranga, Majuli, and the tea belt.

The best for Rural entrepreneurs who are near Assam’s tea gardens, rivers, and wildlife habitats.

5. Meghalaya Homestay & Resort Scheme

Overview It promotes eco-lodges and accommodation in Shillong and its surrounding zones.

Key Features:

• 35% of capex subsidy up to 16 lakh.
• EMI supports Rs6,000/month for 7 years.
• Included are accommodation in a homestay (4 rooms at a minimum) and resorts of a smaller size.
• One LTC-friendly entrepreneur contribution (2%).

Impact:

• Proposed 500 homestays and 5,500 direct jobs in five years.
• Strengthens eco-tourism infrastructure.

The best for Residents living in the vicinity of Shillong, Cherrapunji, and living root bridge circuits.

6. Arunachal Pradesh Tourism Homestay Schemes

Overview The HTML0 overview includes the Chief Minister’s Paryatan Vikas Yojana and Paryatan Shiksha Yojana that is administered by ACT NGO support.

Key Features:

• Guide/driver training at home, certification for guide/drivers.
• Financial support and infrastructure funding.
• Tourism initiatives that are led by communities.

Impact:

• Offers village chances for lasting livelihoods.
• Saves nature and culture by ensuring inclusion.

Ideal for Hosts in villages such as Tawang, Ziro, Itanagar and eco-tourism zones.

7. Punjab Bed-&-Breakfast / Homestay Scheme

Overview: Introduces formal registration under tourism department.

Key Features:

• B&B (includes breakfast) or homestay (stay-only).
• Registration fees: Rs5,000 (Gold), Rs3,000 (Silver).
• Certification, branding, continuous promotion assistance.

Impact:

• Tourist accommodation is increased at the rural and heritage circuits.

Ideal for Cities with houses close to Amritsar/Chandigarh or rural village artisanal.

8. PM Surya Ghar Muft Bijli Yojana

Overview Roof solar for rural homes subsidy to generate free electric power.

Key Features:

• 30-78 kW solar panels with subsidy of Rs30,000-78,000 for homes with grid connections.
• Particularly useful for those with more than 300 units/month of usage.

Impact:

• Reduces operating costs for homestays in a dramatic way.
• Energy-efficient and environmentally friendly stays.

Ideal for Homestays that have roof space in sunny regions (Rajasthan MP and Tamil Nadu).

9. PM Vishwakarma Scheme

Overview supports artisans by providing tools, skills training, funding, and even funding .

Key Features:

• Stipends for daily training (~Rs500).
• E-vouchers for tools worth Rs15,000 plus marketing support.
• 5.5% interest MSME loans and assistance.

Impact:

• Crafts are a great way to show off your work to guests–e.g. weaving, pottery, bamboo.
• It is authentic and reflects the local culture.

Best For: Homestays run by artisan families (Gujarat, Odisha, NE India).

10. PM Kaushal Vikas Yojana (PMKVY) & DDU-GKY

Overview provides vocational training for rural youth in the field of hospitality.

Key Features:

• Free skills training and certificates in languages, hospitality, digital skills.
• Enhances capacity of host for check-in, guest management and hygiene.

Impact:

• Helps local youth get jobs or assist with homestays.
• Guarantees high-quality service and regular reservations.

The best choice for Homestays in states that require multilingual, skilled staff assistance.

Comparison of Yoajan for Homestay Business

How to Choose the Right Scheme

1. Match Location & Asset
   • Uttarakhand and Meghalaya and Meghalaya: hill is
   • Assam/Arunachal: forest/eco stays
   • UPM: pilgrimage or cultural tourism
2. Verify Room Count
   • Some schemes limit the number of spaces (Meghalaya, Uttar Pradesh).
3. Funding Structure
   • Examine subsidy capex and its necessary counterpart.
   • Note interest support timelines.
4. Register & Comply
   • Be aware of the local regulations (DM, SP, district tourism).
   • Learn about branding, inspection, and marketing information.
5. Upgrade Offers
   • Host training Eco-certification, listing platforms, and eco-certification.

Tips to Maximize Benefits

• The pair scheme: e.g., Uttarakhand subsidy plus Surya Ghar solar plus PMKVY personnel training.
• Utilize scheme subsidies to construct organic gardens, solar lighting as well as to help staff to learn.
• The highlight scheme’s credentials for guests are backed by the Highlight scheme. This adds confidence and credibility.
• Keep up-to-date financial and NOC documents. They can speed up inspections.
• Tell success stories (e.g., Uttarakhand preventing the migration of people, Meghalaya’s monthly income of Rs60k) to motivate others.

Real-World Impact

• Uttarakhand changed more than three hundred homes by providing specific subventions.
• Madhya Pradesh saw an increase of 526% rise in tourism and an increase in the number of women.
• Meghalaya homes estimated a monthly income of Rs60,000 using only the amount of EMI .

Conclusion

The Indian homestay support network is robust, with programs aimed at the rural economy, preservation of culture and eco-tourism as well as sustainable living at a low cost. No matter if you’re in the hills of Uttarakhand or in forest areas of Assam or the towns of heritage in UP/MP, there’s an specific program that will help you make the most of your travels.

Through a strategic mix of funding assistance, infrastructure improvements solar power, demonstrations by artisans, and education, you can create an successful homestay business–not just profitable but also resilient and sustainable.