FinMin calls meet with lenders on Swamih Fund II scope expansion

Finance Ministry to discuss SWAMIH Fund II, a ₹15,000 crore blended finance facility to complete 1 lakh homes, building on the success of India's largest real estate stress fund

The Finance Ministry has called a meeting on September 29 to discuss expanding the scope of a fund that provides last-mile support for stalled housing projects. 

Swamih, short for Special Window for Affordable and Mid-Income Housing Investment Fund II, is a follow-up to the government’s special real estate stress fund launched in 2019, according to a senior official. 

“The consultation, co-chaired by the Secretary, Department of Economic Affairs (DEA), and the Secretary, Department of Financial Services, will see participation from CMD/MDs of all major public sector banks, LIC, and select private lenders,” according to the official, referring to chairman and managing directors. 

“The discussions will focus on two main areas: The experience and policy-related issues observed in relation to investments made under Swamih Investment Fund I, and the key considerations regarding the design, structure, and funding criteria for the proposed Fund II.” 

Union Budget 2025-26 announced a plan to set up Swamih Fund II as a blended finance facility, with contributions from the Centre, banks, and private investors. With a proposed corpus of ₹15,000 crore, the fund aims to speed up the construction of 100,000 houses. 

“Under Swamih, 50,000 dwelling units in stressed housing projects have been completed, and keys handed over to homebuyers. Another 40,000 units will be completed in 2025, further helping middle-class families who were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings,” said Finance Minister Nirmala Sitharaman in her Budget speech in February. 

State Bank of India, Life Insurance Corporation of India, Canara Bank and HDFC Bank are among lenders that have been called for the meeting. 

Swamih, which was established in 2019, is sponsored by the Finance Ministry and managed by SBICAP Ventures, a State Bank of India Group company. It is the largest social impact fund in Indian real estate, addressing critical funding gaps for stressed and brownfield residential projects. 

In focus  

Discussions to focus on  two main areas:

• Experience and policy-related issues in relation to investments made under Swamih Investment Fund I
• Key considerations regarding design, structure, and funding criteria for the proposed Fund II