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Real sector Budget 2025: Aiming at completing stuck housing projects and provide relief to homebuyers whose apartments have been delayed for years in the country, Finance Minister Nirmala Sitharaman on February 1 – while reading out the Union Budget 2025-26 – announced that a SWAMIH Fund 2 will be established with ₹15000 crore allocation to help complete an additional 1 lakh housing units.
Under the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, the FM said that 50,000 dwelling units in stressed housing projects have been completed and keys handed over to homebuyers. She added another 40,000 units will be completed in 2025.
The SWAMIH Fund 2 aims at helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units, the FM said while reading out the Union Budget 2025-26 at the Parliament on Saturday.
"Building on this success, SWAMIH Fund-2 will be established as a blended finance facility with contribution from the government, banks and private investors. This fund of ₹15,000 crore will aim for expeditious completion of another 1 lakh units," Sitharaman said.
Introduced on November 6, 2019 to provide priority debt financing for the completion of stalled residential projects, the first SWAMIH fund scheme is managed by SBICAP Ventures Ltd, a State Bank Group company.
The government raised ₹15,530 crore under the SWAMIH Fund-1, with an aim to provide priority debt financing for the completion of stressed, brownfield and Real Estate Regulatory Authority (RERA) registered residential projects that fall in the affordable, mid-income housing category.
The SWAMIH Fund is considered the lender of last resort for distressed projects for established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts, and even projects with litigation issues.
The SWAMIH Fund-2 launch, with a ₹15,000 crore fund, is seen as crucial to reviving stalled residential projects and ensuring timely home deliveries. The government estimates 1 lakh housing units set to benefit while the scheme will boost buyer confidence, enhance liquidity in the real estate sector, and support overall housing market stability.
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