In a move that signals renewed confidence in India’s hospitality growth cycle, the Tourism Finance Corporation of India Ltd (TFCIL) has announced a ₹2,000-crore disbursement target for FY26. The specialized lender aims to broaden its portfolio beyond hotels and resorts to include real estate, MSMEs, and renewable energy-linked projects — a diversification expected to fuel both sustainability and expansion in the travel and tourism ecosystem.
According to TFCIL’s senior leadership, the lending focus will remain on high-quality hospitality assets and tourism infrastructure that directly enhance India’s global competitiveness as a destination. This comes at a time when the Indian travel economy is witnessing a surge in domestic demand, record hotel occupancies, and a strong post-pandemic rebound in tier-II and III city development.
The increased lending window is likely to unlock opportunities for new hotel developments, asset refurbishments, and tourism-linked projects that had been stalled due to funding challenges. Analysts see this as a confidence booster for developers and operators looking to expand under premium and mid-scale brands.
As per industry estimates, India needs nearly 1.5 lakh new branded rooms by 2030 — and institutions like TFCIL will play a key role in bridging that financing gap.
