Government announces SWAMIH fund 2.0 of Rs 15,000 crore for completion of 1 lakh units in Union Budget 2025

With an aim to complete stuck housing projects, Union Finance Minister Nirmala Sitharaman announced to launch the second trench of Special Window for Affordable and Mid-Income Housing (SWAMIH) fund of Rs 15000 crore to help completion of 1 lakh dwelling units.

The announcement was made by Sitharaman while presenting her 8th Union Budget 2025 on February 1.

She said that under SWAMIH Fund scheme 50,000 dwelling units in stressed housing projects have been completed and keys handed over to homebuyers and another 40,000 units will be completed in 2025 further helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units.

“Building on this success, SWAMIH Fund 2.0 will be established as a blended finance facility with contribution from the government, banks and private investors. This fund of Rs 15000 crore fund will aim for speedy completion of another one lakh dwelling units,” Sitharaman said in her budget speech.

The first SWAMIH fund scheme was introduced on November 6, 2019 to provide priority debt financing for the completion of stalled residential projects.

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Real Estate developers have been demanding the SWAMIH Fund 2.0 for long. In 2024, National Real Estate Development Council (NAREDCO) had urged the finance ministry to introduce the second tranche of SWAMIH fund for completion of stuck housing projects across India.

Revival of stuck projects

G Hari Babu, National President, NAREDCO, welcomed the move and said that SWAMIH Fund 2.0 will help the completion of housing projects that were previously stuck due to financial distress.

"This move directly benefits middle-class families, many of whom are juggling EMIs for home loans while also paying rent for alternative accommodation. The move will also help the affordable housing sector," he said.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said that the SWAMIH Fund 2.0 with Rs 15,000 crore outlay will accelerate the completion of stalled housing projects, bringing relief to over one lakh homebuyers.

Navin M. Raheja, CMD, Raheja Developers Limited the introduction of SWAMIH Fund-2 is a timely intervention to expedite the completion of one lakh dwelling units. This move addresses the pressing issue of stalled projects and will instill confidence among homebuyers awaiting their dream homes.

Unlocking liquidity in real estate

Dhruv Agarwala, Group CEO, Housing.com and PropTiger.com, said that the government’s renewed focus on resolving stalled projects is reinforced through the Rs 15,000 crore SWAMIH Fund 2.0, targeting the completion of 1 lakh housing units.

"With the fund already facilitating the delivery of over 50,000 homes and another 40,000 units expected by 2025, this initiative will play a vital role in restoring buyer confidence and improving liquidity in the sector," he said.

Vishal Raheja, Founder & MD, InvestoXpert.com, said that the SWAMIH Fund 2.0 with an infusion of Rs 15,000 crore will prove to be a game-changer for the real estate sector, particularly for homebuyers stuck in delayed projects.

"With over 4.12 lakh stalled units across the top seven cities, as per industry estimates, this step is a significant push towards unlocking liquidity and ensuring timely project deliveries," he said.