SWAMIH-2 Fund Likely Soon: Relief for Stuck Homebuyers and Delayed Housing Projects

The central government is close to finalising the framework for SWAMIH-2, a second Special Window for Affordable and Mid-Income Housing fund. The new fund is expected to be operationalised soon and will provide last-mile funding to stalled residential projects across India.

With a proposed size of ₹15,000 crore, SWAMIH-2 aims to ease the burden on nearly one lakh middle-class homebuyers whose money is locked in delayed projects while they continue paying home loan EMIs.

What Is SWAMIH?

SWAMIH stands for Special Window for Affordable and Mid-Income Housing. The original SWAMIH Investment Fund was launched as a social impact initiative to revive housing projects that were stuck despite being largely sold to buyers.

Sponsored by the Ministry of Finance and managed by SBICAP Ventures Ltd, an SBI Group company, the fund works as a lender of last resort. It supports projects facing financial stress, legal disputes, customer complaints, or even those classified as non-performing assets.

The goal is simple: complete homes and hand them over to buyers who have already paid for them.

Why Is SWAMIH-2 Needed?

While the first SWAMIH fund helped revive many projects, the problem of stalled housing remains widespread. A 2019 study estimated that around 1,500 housing projects, involving nearly 4.6 lakh housing units, were stalled or stressed. Completing these projects would require funding of about ₹55,000 crore.

SWAMIH-2 is being planned to bridge this funding gap and support a new set of delayed but commercially viable projects.

Budget Support and Track Record

In the Union Budget 2025–26, the government allocated ₹1,500 crore as seed capital for SWAMIH-2. Under the original fund, around 50,000 homes have already been completed and delivered, while another 40,000 units are expected to be completed in 2025.

These numbers highlight the fund’s role in unlocking stuck investments and restoring confidence in the housing sector.

How the New Fund Will Work

The mandates for SWAMIH-2 are currently being finalised. The fund will focus on providing last-mile financing to projects that are close to completion and financially viable. Once operational, it is expected to unlock fresh investment and speed up project deliveries.

The fund is backed by a team of around 30 investment professionals, each with significant industry experience.

Read more: IndiGo Refund Delayed? Here is How the Govt is Handling Passenger Complaints.

Conclusion

SWAMIH-2 could bring much-needed relief to homebuyers trapped in delayed housing projects. By supporting last-mile funding and reviving stalled developments, the fund has the potential to restore trust in the housing market and ease financial stress for thousands of families.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.