How the ₹15,000 Crore SWAMIH Fund 2 is Reviving Stalled Housing Projects

On 1st Feb 2025, the Finance Minister announced a ₹15,000 crore boost to the SWAMIH fund, aiming to complete 1 lakh stalled homes. With ₹15,530 crore raised, the fund supports stressed, RERA-registered housing projects. So far, 50,000 homes have been delivered, with 40,000 more expected by 2025. This initiative eases the financial burden on middle-class families managing both EMIs and rent.

What is the SWAMIH Fund?

The SWAMIH Fund is a government-backed initiative launched in November 2019 to revive stalled affordable and mid-income housing projects in India. Managed by SBICAP Ventures Ltd. under the Ministry of Finance, it provides last-mile funding to ensure project completion, safeguard homebuyer investments, and restore confidence in the real estate sector.

The fund focuses on projects that are:

• In the affordable and mid-income housing categories.
  
• Net-worth positive (where the value of receivables is higher than the cost to complete the project).
  
• RERA-registered (Real Estate Regulatory Authority).

Suggested Read: Union Budget 2025 for Home Buyers

Eligibility Criteria for SWAMIH Fund

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund provides last-mile financing to stalled residential projects in India. To qualify for this funding, projects must meet specific eligibility criteria:

Eligibility Criteria	Details
RERA Registration	Projects must be registered under the Real Estate (Regulation and Development) Act (RERA) of 2016.
Project Status	Eligible projects must be declared “stalled” or “delayed” by a competent authority due to financial constraints.
Housing Segment	The fund targets affordable and mid-income housing categories.
Financial Standing	Projects should have a positive net worth, indicating financial viability.

Also Read: What is RERA Registration?

SWAMIH Fund 2 Key Details

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2.0 is a government-backed initiative aimed at reviving stalled housing projects in India. Below is a concise overview of its key aspects:

• Launch Date: February 1, 2025, as part of the Union Budget 2025-26.
  
• Fund Allocation: ₹15,000 crore, contributed by the government, banks, and private investors.
  
• Objective: To provide last-mile funding for the completion of an additional 1 lakh stalled housing units, focusing on affordable and mid-income projects.
  
• Management: Administered by SBICAP Ventures Ltd., a subsidiary of the State Bank of India.
  
• Impact on Homebuyers: Aims to alleviate financial stress for middle-class families paying both EMIs and rent by ensuring timely delivery of homes.
  
• Previous Achievements: The original SWAMIH Fund has successfully completed 50,000 housing units, with an additional 40,000 units expected by the end of 2025.

Also Read: Cities with Affordable Housing in India

How SWAMIH Fund Works

The SWAMIH Fund is a government-backed initiative providing last-mile financing to stalled affordable and mid-income housing projects in India.

• Objective: Provide priority debt financing for the completion of stressed, brownfield, and RERA-registered affordable and mid-income housing projects.
  
• Management: The fund is managed by SBICAP Ventures Ltd., a subsidiary of the State Bank of India, under the sponsorship of the Ministry of Finance.
  
• Eligibility Criteria: Projects eligible for funding are typically 60-90% complete but have stalled due to a lack of funds. These projects must be RERA-registered and fall within the affordable and mid-income housing segments.
  
• Funding Mechanism: Operates as a last-mile financing mechanism, providing the necessary capital to ensure the completion of delayed housing projects.
  
• Impact: Aims to unlock liquidity in the real estate sector, protect homebuyers’ interests, and restore confidence by ensuring the delivery of delayed housing units.

Also Read: Value Investing in Real Estate

Achievements of SWAMIH Fund 1

The SWAMIH Investment Fund 1, launched in 2019, is a government-backed initiative providing last-mile funding for stalled affordable and mid-income housing projects. Managed by SBICAP Ventures Ltd., it has played a crucial role in reviving delayed real estate developments.

• Completion of Housing Units: As of January 2025, the SWAMIH Fund has successfully completed 50,000 homes, providing relief to thousands of homebuyers awaiting possession.
  
• Future Targets: The fund aims to deliver 20,000 homes annually over the next three years, further contributing to the housing sector’s growth.
  
• Project Approvals and Funding: By March 2023, the fund had approved 310 proposals, amounting to ₹31,145 crore in funding, showcasing its commitment to reviving stalled projects.
  
• Social Impact: Recognized as India’s largest social impact fund, SWAMIH has played a pivotal role in restoring confidence in the real estate sector by ensuring the completion of delayed projects. 

SWAMIH Fund 1 has significantly impacted stalled housing projects, ensuring timely completion and reducing financial burdens on homebuyers. 

Also Read: What is Real Estate Syndication?

Benefits of SWAMIH Fund

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund plays a vital role in addressing stalled real estate projects, ensuring timely completion, and supporting homebuyers.

• Timely Home Delivery: Provides financial assistance to stalled, RERA-registered projects, ensuring homebuyers receive their long-delayed homes.
  
• Support for Homebuyers: Reduces financial strain on middle-class families managing both EMIs and rent due to project delays.
  
• Boost to Real Estate Sector: Restores consumer confidence, facilitates property sales, and helps unlock capital stuck in incomplete developments.
  
• Employment Opportunities: Accelerates construction, benefiting builders, contractors, and workers, contributing to economic growth.
  
• Relief for Developers: Acts as a financial safety net for developers facing cash flow issues, legal challenges, or loan defaults.
  
• Stability in Banking Sector: Helps prevent stalled projects from becoming non-performing assets (NPAs), improving liquidity and financial stability.

The SWAMIH Fund continues to be a crucial initiative in ensuring housing project completion, benefiting both homebuyers and the overall economy.

Also Read: Top Real Estate Investment Strategies

Government and Industry Support for SWAMIH Fund

The SWAMIH Fund has strong backing from both the government and real estate industry to revive stalled housing projects.

Government Support:

• Expansion of Fund: SWAMIH Fund 2.0 announced with ₹15,000 crore to complete 1 lakh homes.
  
• Budget Allocation: Recognized as a key initiative in the Union Budget to support homebuyers.

Industry Support:

• Positive Response: Real estate experts see it as a crucial step to restore market confidence.
  
• Sector Growth: Expected to boost housing completion, increase property sales, and benefit the economy.

The SWAMIH Fund continues to drive housing project completion, ensuring homebuyers receive their homes.

Also Read: NRI Investment in Indian Real Estate

Impact of SWAMIH Fund on Stalled Housing Projects

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund has significantly impacted stalled housing projects in India, facilitating project completions and benefiting numerous homebuyers.

Key Impacts:

• Completion of Stalled Projects: As of early 2025, the SWAMIH Fund has successfully completed over 50,000 housing units, providing relief to homebuyers awaiting possession.
  
• Financial Support: The fund has sanctioned approximately ₹12,000 crore across 130 projects, ensuring the completion of delayed developments.
  
• Economic Boost: By reviving stalled projects, the fund has contributed to increased employment opportunities and enhanced liquidity in the real estate sector.
  
• Homebuyer Relief: The initiative has alleviated financial burdens on middle-class families who were simultaneously managing rent and home loan EMIs due to construction delays.

Also Read: What is RERA in Real Estate

SWAMIH Investment Fund Approved Projects

The SWAMIH Investment Fund has approved numerous projects across India to address the issue of stalled housing developments. Here’s an overview of some notable projects that have received funding:

Project Name	Location	Status
Amrapali Group Projects	NCR	Funding approved for multiple stalled projects
Rivali Park	Mumbai	One of the first projects to receive SWAMIH funding
Asset Precious	Kochi	Approved for funding to expedite completion
Lodha Upper Thane	Thane, Maharashtra	Secured funding for timely delivery
Pyramid Urban	Gurugram, Haryana	Approved for pending construction
Gem Paradise	Chennai	Funding received for project completion
SS Leaf	Gurugram, Haryana	Ensuring timely delivery with SWAMIH support
Elite Acres	Chennai	Approved for expedited construction
MK Gabino	Mumbai	Secured funding for project completion
Zen Residences	Pune	Approved for timely handover
The Marquise	Mumbai	Funding received for project completion
Newa Bhakti Park	Navi Mumbai	Approved for SWAMIH funding
Upper East 97	Mumbai	Ensuring project completion
Windspace Amelio	Bengaluru	Approved for accelerated construction
Flora Avenue	Delhi NCR	Secured funding for completion
The Kalpak Homes	Mumbai	Approved for timely delivery
Mantri Serenity	Bengaluru	Funding received for project completion
Naman Premier	Mumbai	Ensuring timely handover to homebuyers
Paranjape Blueridge	Pune	Secured funding for completion
Taruchaya Residency	Jaipur	Approved for accelerated construction

Also Read: Home Loan Guide for First Time Home Buyers

How will SWAMIH Fund Benefit for Middle-Class Families?

The SWAMIH Investment Fund aims to alleviate the financial challenges faced by middle-class families due to delayed housing projects. Key benefits include:

• Completion of Stalled Projects: The fund facilitates the completion of delayed housing units, allowing families to move into their homes sooner.
  
• Financial Relief: By expediting project completions, the fund reduces the dual financial burden of paying both rent and home loan EMIs. 
  
• Enhanced Housing Accessibility: The initiative aims to complete an additional 1 lakh housing units, increasing the availability of affordable homes for middle-income families.

Challenges and Considerations

The SWAMIH Investment Fund has made significant strides in reviving stalled housing projects. However, several challenges and considerations persist:

• Market Conditions: Fluctuations in the real estate market can impact the viability of projects, affecting both developers and investors.
  
• Homebuyer Trust: Past delays have led to skepticism among homebuyers, making it essential to rebuild confidence through timely project completions.
  
• Regulatory Hurdles: Navigating complex approval processes can delay fund disbursement and project progress.
  
• Execution Delays: Challenges such as construction setbacks and legal disputes can hinder timely completion of projects.
  
• Limited Fund Scope: The fund primarily supports affordable and mid-income housing, leaving high-end projects without similar financial assistance.

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Conclusion

SWAMIH Fund 2 is a government initiative aimed at reviving stalled housing projects by providing financial support. It ensures project completion, helps homebuyers receive their long-awaited homes, and boosts the nation’s economic growth in the real estate sector.

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