SWAMIH Fund explained: How it works, eligibility, and what's next
(File photo) The problem it was designed to solve How does it work? Which projects are eligible? It should be stalled primarily because of a
(File photo) The problem it was designed to solve How does it work? Which projects are eligible? It should be stalled primarily because of a shortage of funds rather than regulatory, legal or approval-related issues. The project must also be registered under the Real Estate Regulatory Authority (RERA). (RERA). The fund focuses on affordable and mid-income housing projects. Eligible units should have a carpet area of less than 200 square metres and be priced below Rs 2 crore in Mumbai, Rs 1.5 crore in major metropolitan cities and Rs 1 crore in other locations. Projects are also required to be net-worth positive, meaning the value of unsold inventory and pending collections from homebuyers should exceed the cost required to complete construction. Priority is generally given to projects that are already at an advanced stage of construction. Significantly, projects classified as non-performing assets (NPAs) and those undergoing proceedings before the Company Law Tribunal (NCLT) are also eligible for consideration. Key milestones 2019: SWAMIH Fund launched SWAMIH Fund launched 2021: First project completed – Rivali Park in suburban Mumbai First project completed – Rivali Park in suburban Mumbai March 2023: More than 22,500 homes delivered More than 22,500 homes delivered December 2025: More than 58,000 homes delivered across 146 projects in 20 cities and 12 states More than 58,000 homes delivered across 146 projects in 20 cities and 12 states Budget 2025-26: SWAMIH Fund-2 announced What's next: SWAMIH Fund-2 SWAMIH by the numbers 58,596+ homes completed 146 projects supported 20 cities and 12 states covered 2.38 lakh people expected to benefit 30,000+ jobs generated through revived construction activity Why it matters When a residential project runs out of funds midway through construction, homebuyers are often left paying EMIs and rent simultaneously while waiting for possession.
To address such stalled housing projects, the Centre launched the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in 2019.The government-backed last-mile financing fund provides capital to stressed but viable residential developments, enabling construction to resume and homes to be delivered. Since its launch, the fund has helped complete thousands of homes across the country and has emerged as one of the government's key interventions to address stalled housing projects.Here's how the fund works, which projects qualify, what it has achieved so far, and what SWAMIH Fund-2 is expected to do next.At the time of its launch in 2019, the government estimated that nearly 4.58 lakh housing units across India were stalled, largely due to funding shortages faced by developers. Most of these projects were in the affordable and mid-income housing segments.Homebuyers who had already paid for their homes were left waiting for possession, often while continuing to pay both home loan EMIs and rent. The government estimated that around Rs 55,000 crore would be required to complete these unfinished projects, prompting the creation of a dedicated last-mile financing mechanism through the SWAMIH Fund.SWAMIH pools capital from the government and investors and lends it to stalled-but-viable residential projects as priority debt.
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