Prime Minister Narendra Modi congratulated new home owners in Bengaluru’s first project under SWAMIH Fund.

What is SWAMIH Investment Fund?

• The proposal to set up a ‘special window’ in the form of Alternative  Investment Fund (AIF) to provide priority debt financing for the completion of stressed/stalled housing projects was approved by the Union Cabinet in November 2019.

• The Special Window for Affordable and Mid-income Housing (SWAMIH) Investment Fund has been formed to complete construction of stressed, brownfield, RERA registered residential developments that are in the affordable housing/mid-income category, are net worth positive and require last mile funding to complete construction.

• The SWAMIH Investment Fund is India’s largest social impact fund specifically formed for completing stressed and stalled residential projects.

• This Fund is bridging the trust deficit between homebuyers and developers by completing construction and delivering homes without depending on any other source of finance.

• The Fund is sponsored by the finance ministry and is managed by SBICAP Ventures Ltd., a State Bank Group company.

• The government of India is the sponsor of the fund and has committed a fund infusion of up to Rs 10,000 crore in the Special Window.

Funding is provided to the projects that meet the following criteria:

i) Stalled for lack of adequate funds

ii) Affordable Middle-Income Category

iii) Net worth positive projects

iv) RERA registered

v) Priority for projects very close to completion.

• Till March 2023, it raised Rs 15,530 crore so far with an aim to provide priority debt financing for the completion of stressed, brownfield and Real Estate Regulatory Authority (RERA) registered residential projects that fall in the affordable, mid-income housing category.

• Since the Fund considers first time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts, even projects where there are litigation issues, it is considered as the lender of last resort for distressed projects.

• SWAMIH has provided final approval to about 130 projects with sanctions worth over Rs 12,000 crore. 

• In three years since inception in 2019, the Fund has already completed 20,557 homes and aims to complete over 81,000 homes in the next three years across 30 tier 1 and 2 cities.

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