NEW DELHI: The government is in the final stages of shaping the SWAMIH-2 Fund, aimed at providing last-mile financing for the completion of delayed housing projects, according to sources.
The introduction of the ₹15,000-crore fund is expected to benefit nearly 100,000 middle-class homebuyers whose investments are in limbo despite ongoing EMI payments on their housing loans.
To support this initiative, the government has set aside ₹1,500 crore as seed capital for the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in the 2025-26 budget.
The mandates for the new fund are currently being finalized, with clearance anticipated soon. It is expected to offer last-mile financing for commercially viable projects and unlock investments in halted residential developments.
In November 2019, the Centre launched the SWAMIH stress fund to expedite the completion of stalled housing projects across India. This ‘Special Window’ operates as an Alternative Investment Fund (AIF), providing priority debt financing for these projects. SBI Ventures has been appointed as the Investment Manager for this initiative.
The Fund is sponsored by the Secretary of the Department of Economic Affairs, Ministry of Finance.
Under SWAMIH Fund-1, over 55,000 housing units in stressed projects have been completed, with a target of delivering another 30,000 homes in the next 3-4 years.
The Fund comprises around 30 investment professionals, each with an average of 15 years in the industry.
So far, the SWAMIH Fund-1 has raised ₹15,530 crore, aiming to provide priority debt financing for the completion of stressed, brownfield, and RERA-registered residential projects within the affordable and mid-income housing categories.
Given that the fund considers first-time developers as well as those with troubled projects and poor track records, it serves as the lender of last resort for distressed projects.
A study conducted by the data analytics firm PropEquity, commissioned by SBI Ventures Ltd in 2019, estimated that approximately 1,500 projects with 4.58 lakh housing units were stalled or stressed, requiring an aggregate funding of ₹55,000 crore to complete these developments.
