Rs 15,000 crore lifeline: Government finalising SWAMIH-2 fund — hope for 100k middle-class homebuyers
The new fund will work somewhat like its predecessor, providing last-mile funding for stuck residential projects , but are commercially viable.
It will help homebuyers who continue paying EMIs but haven’t received their apartments due to stalled construction.SWAMIH was first introduced in November 2019 as a stress fund.
It operates as an Alternative Investment Fund (AIF) managed by SBI Ventures, with the economic affairs secretary as the fund’s sponsor.
The fund specifically targets affordable and mid-income housing projects that are RERA-registered.The current SWAMIH Fund-1 has raised Rs 15,530 crore and aims to complete another 30,000 homes in the next 3-4 years.
It employs 30 investment professionals who average 15 years of industry experience.What makes SWAMIH unique is its role as a last-resort lender.
It considers projects from various developers, including first-timers, established builders with troubled projects, those with poor track records, and even projects involved in litigation.The need for such funding came to light after a study by PropEquity in 2019 cited by PTI.
As many as 1,500 projects comprising 458,000 housing units were stuck or distressed and needed Rs 55,000 crore to complete the construction.The government is currently finalizing the details of SWAMIH-2.
Once the nod is given, the body will start its operation to bring succor to stranded homebuyers and revive stalled housing projects across the country.
