Centre Announces ₹15,000 Crore SWAMIH Fund 2.0 to Revitalize Inactive Housing Projects

Struggling homebuyers now may breathe their collective sighs of relief, for the government launches SWAMIH Fund 2.0 to make an extra allocation of ₹15,000 crore. Highlighting the achievement of the objective to complete yet another 1 lakh housing units, so middle-class families could finally get homes that they waited long for during her Budget 2025 speech delivered on 1 February this year, the finance minister said.

A Lifeline for Homebuyers:

It will be based on the success story of SWAMIH Fund 1 that has so far seen the delivery of 50,000 homes, and is anticipated to complete 40,000 units in the year 2025. During all these years of delay, many home buyers have been simultaneously paying both EMI towards home loans and rent for their currently occupied houses. The additional funding will ease this financial burden and speed up the completion of stalled projects.

“Building on this success, SWAMIH Fund-2 will be established as a blended finance facility with contributions from the government, banks, and private investors. This fund of ₹15,000 crore will ensure the timely completion of another 1 lakh housing units,” Sitharaman announced.

What is the SWAMIH Fund?

The SWAMIH Fund was established in 2019. This is a debt financing for stalled brownfield residential projects. It is handled by SBICAP Ventures Ltd, a subsidiary of the State Bank of India (SBI). This acts as the lender of last resort in cases where the developer goes under duress.

Industry Reaction:

The real estate sector has long been advocating for a larger financial boost. Chintan Patel, Partner at KPMG India, hailed the move, stating, “SWAMIH Fund 2 is a welcome step that will help complete several stranded projects. Fund 1 was a big success, supporting many homebuyers in distress.”

Experts believe this fund will enhance buyer confidence, and liquidity, and stabilize the real estate market. According to Vimal Nadar, Head of Research at Colliers India, the fund will drive sustained industry growth and ensure timely home deliveries.

With the launch of SWAMIH 2, the government reiterates its commitment towards affordable housing and relief for homebuyers, a much-needed respite for the struggling real estate sector.