What is SWAMIH Fund?

March 30, 2023

In India, affordable housing remains a critical issue, with many projects remaining incomplete and stalled. This is where the SWAMIH Investment Fund comes into play. It is a social impact fund that was launched in 2019 by the Ministry of Finance, Government of India. The fund provides financial backing for stalled and stressed mid-income and affordable housing projects across the country. In this article, we’ll delve deeper into what the SWAMIH Investment Fund is, how it operates, and its impact on affordable housing projects across India.

What is the SWAMIH Investment Fund?

The SWAMIH Investment Fund is a social impact fund that aims to provide funding for affordable and mid-income housing projects that are stalled, stressed, or delayed. The fund was launched in 2019 and is sponsored by the Ministry of Finance, Government of India. SBICAP Ventures Ltd., a State Bank Group company, manages the fund.

Types of Projects Funded by SWAMIH

SWAMIH Investment Fund provides funding for brownfield, RERA-registered, and stressed residential projects that fall under the affordable and mid-income housing category. The fund considers projects by first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints, NPA accounts, and even projects with litigation issues.

SWAMIH Investment Fund: The Lender of Last Resort

The SWAMIH Investment Fund is considered the lender of last resort for distressed housing projects. It accelerates the performance of the delayed housing projects by enabling better collections and sales. The Finance Ministry claims that the SWAMIH Investment Fund has one of the largest domestic real estate private equity teams focused only on funding and monitoring the completion of stressed housing projects.

Impact of SWAMIH Investment Fund

Since its launch, the SWAMIH Investment Fund has been successful in completing stalled housing projects and providing debt financing to developers. The government has released over Rs.2,646 crore to the SWAMIH fund till the 17th of this month. The fund has delivered over 22,500 homes to date, providing much-needed relief to homebuyers who have been waiting for years for their homes.

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