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The SWAMIH Fund, launched in 2019, aims to finance stressed and stalled residential projects. The government has now introduced SWAMIH Fund-2 with an INR 15,000 crore allocation, expected to complete 1 lakh housing units by 2025-26. The fund prioritizes affordable and mid-income housing projects facing financial distress, legal issues, or NPA status, benefiting homebuyers waiting for possession. So far, 50,000 units have been completed under SWAMIH Fund-1, with 40,000 more expected in 2025.
The SWAMIH Fund, launched in 2019, is aimed at providing debt financing for stressed and brownfield residential projects. Funded by the Finance Ministry and managed by SBICAP Ventures Ltd, a State Bank Group company, the fund has been instrumental in addressing the liquidity crisis faced by developers. The real estate sector had previously urged the government to allocate INR 50,000 crore to the second tranche of the SWAMIH Fund for the fiscal year 2024-2025. So far, the first tranche of SWAMIH Fund-1 has raised INR 15,530 crore, with the aim of providing priority debt financing for the completion of affordable and mid-income housing projects that are either stalled or facing financial distress. Advertisement
Mr. Prashant Sharma, President of NAREDCO Maharashtra, said, "A notable highlight is the progress under SWAMIH, which has completed 50,000 homes in stressed projects and will deliver 40,000 more in 2025, easing financial strain on homebuyers. The INR 15,000 crore SWAMIH Fund 2 will accelerate the completion of another one lakh homes, benefiting middle-class families and boosting market sentiment."
The SWAMIH Fund targets projects that are registered with the Real Estate Regulatory Authority (RERA), and it focuses on first-time developers, developers with troubled projects, or those with a poor track record. It also offers support for projects with customer complaints, NPA accounts, and even those embroiled in litigation. As such, it is regarded as the lender of last resort for distressed housing projects.
The announcement of SWAMIH Fund-2, with its INR 15,000 crore allocation, is viewed as a critical step in reviving stalled residential projects, ensuring timely delivery of homes, and restoring buyer confidence. Vimal Nadar, Head of Research at Colliers India, noted that the fund will improve liquidity in the real estate sector and contribute to the stability of the housing market, ultimately driving growth in the industry.
Pramod Khairnar, President of CREDAI Maharashtra, said, "Hon'ble Finance Minister Nirmala Sitharaman outlined measures to expand affordable housing, including the completion of 40,000 housing units in 2025-26. This initiative will help families who are paying rent while waiting for their purchased apartments to be ready, and will be part of the Special Window for Affordable and Mid-income Housing Scheme (SWAMIH)."
To bring relief to homebuyers facing years of delay in receiving possession of their apartments, Finance Minister Nirmala Sitharaman announced the establishment of SWAMIH Fund-2 with an allocation of INR 15,000 crore. This new initiative will help expedite the completion of an additional 1 lakh housing units, further addressing the challenges faced by middle-class families who are burdened by EMIs for their loans and the rent of temporary accommodations.
Under the existing Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, 50,000 dwelling units have been completed, with keys handed over to buyers. Additionally, 40,000 more units are expected to be completed in 2025, benefiting homeowners who have been struggling with delayed possession. Finance Minister Sitharaman shared that the SWAMIH Fund-2 will operate as a blended finance facility, with contributions from the government, banks, and private investors. The INR 15,000 crore fund is designed to accelerate the completion of another 1 lakh units.
The launch of SWAMIH Fund-2 is expected to play a key role in not only completing delayed housing projects but also in improving housing affordability. With more homes being delivered, the fund will help ease the housing supply shortage, making homeownership more accessible for India's middle class, which has long struggled with limited affordable options.
Mr. Santosh Agarwal, CFO & Executive Director of Alphacorp, said, "The Union Budget 2025 takes a balanced approach towards economic growth and development. The announcement of SWAMIH Fund 2, with INR 15,000 crore allocated, will expedite the completion of 1 lakh stressed housing units, offering relief to homebuyers facing dual financial burdens of EMIs and rent. Timely delivery of housing projects will boost consumer confidence and market stability. The new tax regime, with no income tax levied up to INR 12 lakh, will increase disposable income and bring individuals closer to homeownership. Additionally, omitting TCS on the sale of goods will improve business cash flow."
SWAMIH Fund-2?s launch is a promising step towards tackling the housing sector?s delays and liquidity issues, providing relief to countless homebuyers waiting for possession of their apartments. By allocating INR 15,000 crore to complete 1 lakh units, the government is reinforcing its commitment to affordable housing and supporting the stability of the real estate market. While challenges such as regulatory hurdles and rising construction costs remain, the focus on transparency, timely completion, and RERA compliance is expected to inspire confidence in both buyers and developers. Ultimately, this initiative will play a pivotal role in easing the housing crisis for India?s middle class.
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