The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund is a government initiative launched in 2019. This scheme was introduced to address the growing problem of stalled housing projects in India.
It is managed by SBICAP Ventures Ltd., a subsidiary of the State Bank of India (SBI). The primary objective of SWAMIH is to provide last-mile funding to financially stressed housing projects, particularly those under the Real Estate Regulatory Authority (RERA).
The fund acts as a “lender of last resort”, ensuring that developers with net-worth positive projects can complete construction and deliver homes to homebuyers.
Why was SWAMIH Fund Created?
India’s real estate sector, especially in the affordable and mid-income segments, has faced multiple challenges:
- Financial constraints leading to stalled projects
- Unsold inventory piling up in Tier I and II cities
- Homebuyers paying EMIs and rent simultaneously
- Distressed developers unable to secure funding
To tackle these challenges, the government introduced SWAMIH as a social impact investment fund, aimed at reviving stalled projects and restoring market confidence.
The first tranche, SWAMIH Fund 1.0, raised over ₹25,000 crore with contributions from the government, LIC, SBI, and other financial institutions. It successfully completed over 50,000 homes and revived more than 130 projects across India.
What were the Achievements of SWAMIH Fund 1.0?
SWAMIH Fund 1.0 created a significant impact on India’s real estate sector:
- Liquidity Unlocked: More than ₹35,000 crore was released into stalled housing projects.
- Housing Units Completed: Over 50,000 dwelling units were delivered to homebuyers.
- Projects Revived: More than 130 housing projects were successfully completed.
- Industry Boost: Ancillary industries such as cement, steel, and construction labor benefited.
- Investor Returns: The fund generated returns for its investors while completing stressed projects.
The success of Fund 1.0 laid the foundation for SWAMIH Fund 2.0, with a more focused and ambitious approach.
What is SWAMIH Fund 2.0?
SWAMIH Fund 2.0 is the second installment of India’s special window for affordable and mid-income housing, announced in the Union Budget 2025. With a corpus of ₹15,000 crore, the fund aims to:
- Complete 1 lakh stalled residential units
- Provide relief to homebuyers facing delayed project possession
- Revive the real estate sector by unlocking liquidity and generating employment
Unlike its predecessor, SWAMIH Fund 2.0 follows a blended finance model, involving investments from:
- The Government of India
- Banks
- Non-Banking Financial Companies (NBFCs)
- Private investors
This diversified approach ensures a larger pool of funds for completion of viable, stressed projects.
What are the Key Features of SWAMIH Fund 2.0?
SWAMIH Fund 2.0 is designed to accelerate the completion of stalled affordable and mid-income housing projects across India. By combining government support with private and banking sector participation, the fund ensures timely project completion, benefits homebuyers, and strengthens the real estate ecosystem.
| Feature | Details |
| Blended Finance Model | Combines contributions from government, banks, NBFCs, and private investors to create a robust funding mechanism for stalled projects. |
| Focus on Affordable & Mid-Income Housing | Targets projects with unit prices below ₹2 crore in Mumbai, ₹1.5 crore in NCR, and ₹1 crore in other cities, ensuring middle-class families benefit. |
| Last-Mile Funding | Provides financing to RERA-registered projects that are near completion but facing financial constraints. |
| Higher Investment Per Project | Allocates more funds per project to ensure timely completion and delivery of homes. |
| Faster Implementation | Streamlines project evaluation, approval, and fund disbursement to reduce delays in project completion. |
Who will Benefit from SWAMIH Fund 2.0?
SWAMIH Fund 2.0 is designed to support multiple stakeholders in the real estate ecosystem. By completing stalled projects, it provides relief, liquidity, and economic growth opportunities to homebuyers, developers, financial institutions, and allied industries.
- Construction & Allied Industries
- Homebuyers
- Real Estate Developers
- Banking Sector & NBFCs
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How will SWAMIH Fund 2.0 Impact the Real Estate Sector?
The completion of stalled housing projects under SWAMIH Fund 2.0 not only benefits homebuyers and developers but also revitalizes the broader economy. By ensuring timely project completion, the fund addresses key challenges in India’s real estate sector and strengthens related industries.
- Strengthen Financial Sector: Reduction of stressed loans and NPAs ensures a healthier banking and NBFC sector, improving investor confidence.
- Boost Homebuyer Confidence: Timely project completion restores trust in developers and encourages investment in under-construction properties.
- Reduce Unsold Inventory: Completing stalled projects reduces the backlog of over 5 lakh unsold units, stabilizing supply-demand balance and real estate prices.
- Revive Real Estate-Linked Industries: Increased demand for steel, cement, construction labor, and allied industries stimulates economic growth.
- Employment Generation: Creation of jobs in construction, manufacturing, and service sectors benefits millions of workers.
What are the Challenges of SWAMIH Fund 2.0?
Despite its promising structure, the fund faces several challenges:
- Limited Fund Size: ₹15,000 crore may not cover all stalled projects, as the total value of delayed projects exceeds ₹4 lakh crore.
- Timely Execution: Fast approvals and disbursement are critical to achieving fund objectives.
- Legal Hurdles: Litigation in some projects can delay funding even if resources are available.
- Developer Participation: Not all builders may comply with the conditions set by the fund.
How has SWAMIH Fund Performed So Far?
SWAMIH Fund 1.0 has shown remarkable results:
- 20,557 homes completed since inception
- 130 projects approved with a total sanction of over ₹12,000 crore
- Liquidity unlocked of more than ₹35,000 crore
- Positive impact on real estate-linked sectors such as cement, steel, and labor
With SWAMIH Fund 2.0, these results are expected to multiply, benefiting over 1 lakh homebuyers and restoring confidence in the sector.
What Makes SWAMIH Fund an Alternative Investment Fund (AIF)?
SWAMIH is registered as a Category-II AIF with SEBI, designed to pool investments from multiple sources to invest in non-traditional assets like stressed real estate projects.
- Focused on social impact by completing stalled residential projects
- Investments primarily in debt financing for affordable and mid-income housing
- Managed by a professional fund manager (SBICAP Ventures Ltd.)
- Designed for high-net-worth individuals and institutional investors with expertise in complex investments
What is the Government doing Alongside SWAMIH Fund?
The government has taken additional steps to strengthen the real estate sector:
- Digitisation of land records for transparency and quicker project approvals
- Incentives for developers and banks to participate in housing projects
- Support for affordable housing under PMAY and other initiatives
Key Takeaway Table
| Aspect | Details |
| Fund Name | SWAMIH Fund 2.0 |
| Launch Year | 2025 (Second installment) |
| Managed By | SBICAP Ventures Ltd. (SBI Subsidiary) |
| Corpus | ₹15,000 crore |
| Objective | Complete 1 lakh stalled affordable and mid-income housing units |
| Eligibility | RERA-registered, net-worth positive projects needing last-mile funding |
| Beneficiaries | Homebuyers, developers, banks, construction sector |
| Focus Cities | Tier I and Tier II cities across India |
| Funding Model | Blended finance (Government + Banks + NBFCs + Private Investors) |
| Expected Impact | Housing completion, economic growth, employment, banking sector health |
Questions Based on SWAMIH Fund 2.0
- When was the original SWAMIH Fund launched?
a) 2018
b) 2019
c) 2020
d) 2021
e) 2017 - Which entity manages SWAMIH Fund 2.0?
a) LIC
b) SBI Mutual Fund
c) SBICAP Ventures Ltd.
d) HDFC Ltd.
e) RBI - What is the corpus of SWAMIH Fund 2.0?
a) ₹10,000 crore
b) ₹15,000 crore
c) ₹25,000 crore
d) ₹5,000 crore
e) ₹50,000 crore - SWAMIH Fund primarily targets which segment?
a) Luxury housing
b) Affordable and mid-income housing
c) Commercial projects
d) Industrial parks
e) Urban infrastructure - Which cities have maximum stalled projects in Tier I cities?
a) Mumbai
b) Greater Noida
c) Bengaluru
d) Pune
e) Chennai - SWAMIH Fund 2.0 follows which funding model?
a) Government only
b) Bank only
c) Private only
d) Blended finance
e) Crowdfunding - What is the primary purpose of SWAMIH Fund?
a) Build new housing projects
b) Complete stalled housing projects
c) Invest in commercial real estate
d) Finance luxury hotels
e) Provide loans to individuals - How many units are expected to be completed under SWAMIH Fund 2.0?
a) 50,000
b) 1 lakh
c) 1.5 lakh
d) 2 lakh
e) 25,000 - Which sector benefits indirectly from SWAMIH Fund?
a) Cement and steel
b) Telecom
c) IT
d) Agriculture
e) Pharmaceuticals - SWAMIH Fund is registered under which category as an AIF?
a) Category I
b) Category II
c) Category III
d) Category IV
e) Category V
Also Read:
Answer Key
| Question No. | Answer |
| 1 | b) 2019 |
| 2 | c) SBICAP Ventures Ltd. |
| 3 | b) ₹15,000 crore |
| 4 | b) Affordable and mid-income housing |
| 5 | b) Greater Noida |
| 6 | d) Blended finance |
| 7 | b) Complete stalled housing projects |
| 8 | b) 1 lakh |
| 9 | a) Cement and steel |
| 10 | b) Category II |
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