SWAMIH Fund

By : Neha Dhyani

Updated : Apr 18, 2022, 10:02

The 'Special Portal for Financing Stalled Moderate and Middle-Income Housing Developments,' or 'SWAMIH' Scheme or SWAMIH Fund, was introduced by the central government in November 2019. This 'last mile funding' of stalled projects would be provided by a Securities and Exchange Board of India-registered Category-II AIF (Alternate Investment Fund) borrowing fund (SEBI).

SWAMIH Fund Aim

SWAMIH Fund aims to provide prioritized debt financing for the execution of housing projects in the inexpensive and middle-income housing classifications. The government defines 'affordable and middle-income developments' as those with flats that are less than 200 m² in carpet area and are marketed as follows:

  • In the Mumbai Metropolitan Area, up to INR 2 crore is possible.
  • In the NCR, Chennai, Kolkata, Pune, Hyderabad, Bangalore, and Ahmedabad, up to INR 1.5 crore is available.
  • In the remainder of India, up to INR 1 crore is permissible.

SWAMIH Fund Purpose

According to a press statement from the federal government, the SWAMIH Fund was launched to assist property speculators who require funds to complete unfinished projects and, as a result, assure speedy delivery of homes to homebuyers.

The initiative aims to contribute to India's real estate sector's growth. 1,509 housing projects with 4.58 lakh units must meet the qualifying conditions given below to be eligible for the scheme.

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SWAMIH Fund - Eligibility required

Given below are the eligibility criteria for the SWAMIH Fund:

  • The estate projects that apply for SWAMIH last-mile assistance must be RERA-registered and have been stopped owing to a lack of sufficient funds.
  • They must also fall into the category of 'Affordable and Middle-Income Projects.' SWAMIH Funding is also available for initiatives with a positive net worth.
  • The worth of their revenues (debts due to them by buyers) plus the amount of their unsold stocks is more than their completion expenses and outstanding liabilities for net-worth positive projects.
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SWAMIH Investment Fund Benefits

Once these residences are built and completed, a huge amount of capital that has been held captive in these ventures will be released. Construction workers will be employed, and associated sectors like steel and cement will benefit.

It will enhance the country's economic sentiment and banks' and NBFCs' portfolios.

Role of the Central Government in the SWAMIH Fund

The sponsor of the SWAMIH Fund is the Central government, through the Department of Economic Affairs. Rs. 10,000 crores have been infused into the fund, and the government seeks to obtain matching contributions from other investors.

The list includes domestic pension and provident funds, global pension funds, sovereign wealth funds, banks, NBFCs and other institutional investors. A total of Rs. 25,000 crore is expected to be generated.

The SWAMIH Funds' goal is to finance net-worth positive stalled projects, such as those declared Non-Performing Assets (NPAs) or are undergoing proceedings even before the National Company Law Tribunal (NCLT) under the IBC.

SWAMIH Fund investment vehicle will provide steadily for the past mile financing to the strained reasonably priced and middle-income accommodation infrastructure investments.

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FAQs on SWAMIH Fund

Q.1. What is the full form of the SWAMIH Fund?

The 'Special Portal for Financing Stalled Moderate and Middle-Income Housing Developments,' or SWAMIH Fund, was introduced by the central government in November 2019.

Q.2. When was the SWAMIH Fund introduced?

The SWAMIH Fund was introduced by the central government in November 2019.

Q.3. What is the aim of the SWAMIH Fund?

The aim of the SWAMIH Fund is to provide prioritized debt financing for the execution of housing projects in the inexpensive and middle-income housing classifications.

Q.4. What is the major benefit of the SWAMIH Fund?

The major benefit of the SWAMIH Fund is that construction workers will be employed, and associated sectors like steel and cement will also benefit. It will greatly enhance the country's economic sentiment and banks' and NBFCs' portfolios.

Q.5. Who will provide the last mile funding of stalled projects in the SWAMIH Fund?

This 'last mile funding' of stalled projects in the SWAMIH Fund would be provided by a Securities and Exchange Board of India-registered Category-II AIF (Alternate Investment Fund) borrowing fund (SEBI).