In a move aimed at providing major relief to homebuyers affected by stalled housing projects, the Union Finance Minister announced the launch of SWAMIH Fund-2 during the Union Budget 2025. The fund is an extension of the government’s Special Window for Affordable and Mid-Income Housing (SWAMIH) initiative, which has already transformed the housing sector by reviving incomplete real estate projects.
The objective of SWAMIH Fund-2 is to support stuck housing projects that are financially stressed and are at various stages of construction but are unable to proceed due to lack of funding. With the introduction of this second fund, the government has reiterated its commitment to ensure that middle-class homebuyers receive possession of their long-delayed homes.
What is SWAMIH?
The Special Window for Completion of Construction of Affordable and Mid-Income Housing (SWAMIH) was first launched in 2019 to support distressed real estate projects that were non-NPA (Non-Performing Asset) and non-NCLT (not under insolvency). It aimed to provide last-mile funding to housing projects that were almost complete but lacked the final push due to funding constraints.
The first SWAMIH Fund has been widely recognized for its success. Over 50,000 housing units were completed under the original fund, offering huge relief to homebuyers who were paying EMIs for years without receiving possession, often while also paying rent for alternative accommodation.
Impact of SWAMIH Fund-2
Building on the success of the first phase, SWAMIH Fund-2 is expected to support the completion of 40,000 more housing units in 2025. These units belong largely to mid-income homebuyers, who form the backbone of India’s housing demand and were the worst affected due to stalled projects.
This move will bring a fresh wave of confidence among homebuyers, restore trust in the real estate sector, and help free up locked capital and assets across the housing sector. It is also expected to reduce bad loans in banks, which were often created due to non-repayment by builders with stuck projects.
Government’s Vision for Middle-Class Homebuyers
The Finance Minister, while presenting the Union Budget 2025, stated:
“SWAMIH Fund-2 has been launched to ensure that no honest homebuyer is left without a home. This fund will help complete another 40,000 homes in 2025, in addition to the 50,000 already delivered under SWAMIH Fund-1. The government stands firmly with middle-class families who have invested their hard-earned money into housing projects.”
Eligibility and Coverage
Just like its predecessor, SWAMIH Fund-2 will target projects that:
- Are net-worth positive
- Are registered under RERA
- Are not classified as NPA or under NCLT
- Require last-mile funding to complete construction
- Primarily fall under the affordable and mid-income segment
The fund will be professionally managed and will work in collaboration with government agencies, developers, financial institutions, and homebuyer associations to ensure smooth and timely completion.
A Lifeline for Stuck Projects and Economic Boost
The revival of stuck projects through this fund will create jobs, boost the construction sector, and contribute to the overall economic revival. It will also enhance urban infrastructure and help restore equilibrium in the real estate market.
The SWAMIH Fund-2 is another example of the government’s holistic approach to resolve homebuyer grievances, revive confidence in the real estate market, and push forward the dream of Housing for All.
