Govt Set to Launch SWAMIH-2 Fund to Revive Stalled Housing Projects
The Centre is close to operationalising the ₹15,000-crore SWAMIH-2 Fund, aimed at providing last-mile funding to stalled housing projects and offering relief to nearly one lakh homebuyers.
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SWAMIH-2 to target completion of around 1 lakh stalled homes
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₹1,500 crore earmarked as seed capital in Budget 2025–26
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Fund to focus on viable, RERA-registered stressed projects
New Delhi: The government is preparing to roll out the SWAMIH-2 Fund, a ₹15,000-crore initiative designed to provide last-mile financing for stalled housing projects across the country, sources familiar with the matter said. The move is expected to bring long-awaited relief to nearly one lakh middle-class homebuyers whose investments remain stuck despite ongoing EMI payments.
The contours and mandate of the new fund are currently being finalised, with official approvals expected soon. Once operational, SWAMIH-2 will focus on commercially viable residential projects that require limited funding support to reach completion, thereby unlocking stalled investments and restoring buyer confidence.
For the new phase, the government has already set aside ₹1,500 crore as seed capital under the Special Window for Affordable and Mid-Income Housing (SWAMIH) in the Union Budget 2025–26. The fund is expected to follow a structure similar to its predecessor, offering priority debt to projects facing financial stress.
The original SWAMIH Fund, launched in November 2019, was created as a special window in the form of an Alternative Investment Fund (AIF) to support stalled housing developments. Managed by SBI Ventures, the fund was positioned as a lender of last resort, backing projects that were RERA-registered but stressed due to funding gaps, litigation issues, poor developer track records, or non-performing assets (NPAs).
Since its inception, SWAMIH Fund-1 has raised ₹15,530 crore and facilitated the completion of over 55,000 homes. It aims to deliver an additional 30,000 dwelling units over the next three to four years. The fund currently operates with a team of around 30 investment professionals, each bringing significant industry experience.
Industry estimates underline the scale of the problem. A 2019 study by PropEquity, commissioned by SBI Ventures, found that nearly 1,500 housing projects involving 4.58 lakh units were stalled nationwide, requiring close to ₹55,000 crore to reach completion.
With SWAMIH-2, the government hopes to accelerate project deliveries, reduce stress in the housing sector, and provide much-needed closure to homebuyers caught in long-delayed developments.
