The Reserve Bank of India will exempt a government-backed SWAMIH fund from its tightened rules for alternate investment funds (AIF).

About SWAMIH Fund
The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund is a government-backed initiative in India that provides last-mile debt financing to complete stalled and stressed residential housing projects. Launched in 2019, the fund aims to deliver homes to distressed homebuyers and revive the real estate sector. 

Key features

• Fund manager and sponsor: The SWAMIH Fund is managed by SBICAP Ventures Ltd., a subsidiary of the State Bank of India, and sponsored by the Ministry of Finance, Government of India.
• Fund type: It is a Category-II Alternative Investment Fund (AIF) debt fund, which is a pooled investment vehicle that invests in assets other than traditional securities.
• Corpus: The fund has raised approximately ₹15,530 crore through investments from the government, banks, and other financial institutions.
• Lender of last resort: The fund is often considered a "lender of last resort" for stalled projects, providing financing where traditional lenders are unwilling to take on the risk.
• Project focus: It finances stalled, brownfield, and Real Estate Regulatory Authority (RERA)-registered projects that fall under the affordable and mid-income housing categories. 

Eligibility criteria for projects
For a project to qualify for SWAMIH funding, it must meet the following criteria: 

• Be registered under the Real Estate (Regulation and Development) Act (RERA).
• Be classified as a stressed or stalled project in need of last-mile funding.
• Be "net-worth positive," meaning the value of its unsold inventory and receivables is greater than the cost to complete construction and repay existing liabilities.
• Have at least 30% of the construction and development work completed.
• Be primarily focused on affordable and mid-income housing, with a cap on unit prices depending on the city.
• Not be used to repay existing lenders. 

Benefits of the fund
The SWAMIH fund provides relief to multiple parties in the real estate sector: 

• For homebuyers: Ensures the timely completion and delivery of their long-awaited homes, providing a reliable path to possession.
• For developers: Offers a financial lifeline to complete stalled projects, which helps clear unsold inventory and restore credibility.
• For the economy: Revives construction activity, creates employment for construction workers, and boosts allied industries such as cement and steel.
• For banks and NBFCs: Prevents incomplete projects from becoming Non-Performing Assets (NPAs), which reduces bad loans and strengthens the financial system.
• Boosts confidence: The government backing and oversight restore confidence in the real estate market, encouraging further investment. 

Achievements and future plans

• Success of SWAMIH Fund I: As of early 2025, Fund I had sanctioned over ₹12,000 crore for more than 130 projects, completing over 50,000 homes. Notable projects include Rivali Park in Mumbai and several from the Amrapali Group.
• SWAMIH Fund 2.0: In the 2025 Union Budget, the government announced SWAMIH Fund 2.0 with an additional ₹15,000 crore corpus. This second phase aims to complete another 1 lakh stalled housing units through a blended finance model.

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