SWAMIH Investment Fund II in process of being Formally Launched - Finance Minister

SWAMIH Investment Fund II was announced as part of the recent Union Budget, and is in the process of being formally launched with an objective to provide relief to distressed homebuyers whose investments are stuck, Finance Minister Nirmala Sitharaman informed Parliament a few days ago.

Budget 2026-27 announced a fresh Rs. 15,000 Crore ‘SWAMIH Fund’ for the completion of 1 lakh units in stalled housing projects across various cities.

As on January 31, 2026, Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund has committed investment in 148 projects, she said in a reply in the Lok Sabha.

The fund has had a measurable impact on reviving buyer confidence and reducing stress in the housing sector by delivering 63,200 homes with a total 1, 01,443 homes in the portfolio across India, she said.

In November 2019, the Indian Government unveiled a stress fund SWAMIH, designed to revive languishing housing projects nationwide.

This initiative took the form of a ‘Special Window’, specifically an Alternative Investment Fund (AIF), which was established to offer prioritized debt financing. The State Bank of India Ventures was designated as the Investment Manager for this particular window.

Under the SWAMIH Fund-1, a total of Rs. 15,530 Crore has been secured to date. The fund’s primary goal is to offer priority debt financing. This funding is intended for the completion of residential projects that are stressed, brownfield, and registered with the Real Estate Regulatory Authority (RERA). These projects must also fall into the affordable and mid-income housing segments.

Given its willingness to work with first-time developers, those with existing projects facing difficulties, and even those with a history of stalled developers, the fund effectively serves as a last resort for projects in distress. This including developers with customer complaints, non-performing asset accounts, and projects entangled in legal disputes.