SWAMIH Investment Fund: Rescuing Stalled Real Estate Projects and Empowering Homebuyers

17 April 2024 - LUD: 6 July 2024

Ashutosh Raj

SWAMIH Investment Fund: The SWAMIH Investment Fund, initiated in 2019, is a government-supported financial initiative designed to rejuvenate stalled real estate projects across India. Managed by SBICAP Ventures Ltd., a subsidiary of the State Bank Group, this Category-II AIF debt fund registered with SEBI (Securities and Exchange Board of India) offers relief to homebuyers who have been affected by the delay in project completion.

SWAMIH Investment Fund:

SWAMIH Investment Fund: Eligibility Criteria

To be eligible for funding from SWAMIH, real estate projects must meet specific criteria. Firstly, they must have stalled due to a lack of sufficient funds. Additionally, the projects must be registered under the Real Estate (Regulation and Development) Act (RERA). Furthermore, the projects should be in their final stages of completion and fall under the ‘Affordable and Middle-Income Project’ category, with housing units not exceeding 200 sq.m. Funding is also available for net-worth positive projects, where the value of receivables and unsold inventories surpasses completion costs and outstanding liabilities.

SWAMIH Investment Fund: Objective:

SWAMIH aims to provide financial assistance to facilitate the timely completion of housing projects that have encountered delays. By injecting much-needed liquidity into the real estate sector, the fund supports the growth of essential industries such as cement and steel. Its ultimate goal is to ensure the delivery of apartments to homebuyers who have long awaited possession.

SWAMIH Investment Fund: Conclusion

The SWAMIH Investment Fund plays a crucial role in revitalizing stalled real estate projects and alleviating the concerns of homebuyers. By offering financial support and addressing liquidity challenges, the fund ensures the completion of projects and facilitates the timely delivery of apartments. This initiative not only benefits homebuyers but also contributes to the growth of core industries, thereby strengthening the overall real estate sector in India.

TO KNOW MORE

https://www.sbicaps.com/whatsnew/swamih-investment-fund-i/

How does the SWAMIH Investment Fund work?

The SWAMIH Investment Fund is a government-backed initiative that provides financial support to stalled real estate projects. It helps overcome liquidity challenges and ensures timely completion, benefiting homebuyers

Who manages the SWAMIH Investment Fund?

The fund is managed by SBICAP Ventures Ltd., a subsidiary of the State Bank Group, under the sponsorship of the Ministry of Finance.

What types of real estate projects are eligible for SWAMIH funding?

Projects that have stalled due to a lack of funds and are registered under RERA can qualify for SWAMIH funding. Affordable and middle-income projects with housing units up to 200 sq.m. are prioritized.