Why in news?
In October 2025 the Reserve Bank of India exempted the government‑backed Special Window for Affordable and Mid‑Income Housing (SWAMIH) Investment Fund from recently tightened rules on alternate investment funds. The exemption recognises the fund’s social purpose of reviving stalled housing projects and protecting home buyers.
Background
The SWAMIH Fund was established in 2019 by the Ministry of Finance as a Category‑II alternate investment fund. Managed by SBICAP Ventures Ltd, it provides last‑mile debt financing to real‑estate projects that are stuck due to funding shortages or legal complications. Many of these projects fall under the affordable or mid‑income category and are registered under the Real Estate (Regulation and Development) Act (RERA) 2016. The fund acts as the lender of last resort, ensuring that unfinished buildings are completed so that buyers receive their homes.
Objectives
- Completing stalled projects: Provide financial support to projects that have been halted due to lack of funds or litigation, enabling developers to finish construction.
- Protecting home buyers: Safeguard the interests of thousands of families who have invested their savings in apartments that remain incomplete.
- Reviving the real‑estate sector: Inject liquidity into the housing market and restore confidence among buyers and investors.
- Stimulating economic growth: The construction sector generates jobs and has a ripple effect on allied industries such as steel, cement and logistics.
Eligibility and operations
- Registered projects: Only projects registered under RERA qualify for funding.
- Distressed status: Projects should be classified as non‑performing assets or under insolvency proceedings, or declared as stalled or delayed by a competent authority.
- Housing categories: The fund focuses on affordable and mid‑income housing developments, rather than luxury segments.
- Fund structure: Investments are made in the form of secured debt, ensuring that the fund has priority in recovering its loans.
Achievements
- The fund has raised more than ₹15,000 crore and approved around 130 projects across India, providing sanctions exceeding ₹12,000 crore.
- It has already helped deliver tens of thousands of homes and aims to complete over 80,000 units in the coming years.
Conclusion
By rescuing stalled housing projects, the SWAMIH Fund restores confidence among home buyers and builders alike. The recent regulatory exemption will allow the fund to operate without additional provisioning burdens on banks, enabling it to deliver more homes and support India’s housing aspirations.
Source: Economic Times