SWAMIH Investment Fund

Context: Recently the Prime Minister congratulated new homeowners in Bengaluru’s first project under SWAMIH Fund which has helped more than 3000 families in owning their dream homes. About SWAMIH Fund:
  • The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects.
  • Launched in: 2019
  • Sponsored by: Ministry of Finance
  • Managed by:  SBICAP Ventures Ltd., a State Bank Group company.
  • Lender of last resort for distressed projects: The Fund will consider first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts.
  • Criteria to be eligible for funding :
    • Project stalled or likely to be stalled if no funding is made available
    • At least 90% of the available Floor Space Index (FSI)/ Floor Area Ratio (FAR) is being developed as Affordable Housing units or Mid-Income Housing units
    • Project is net worth positive – value of sold receivables plus unsold inventory is greater than cost to complete construction and to service the investment by the Fund
    • Project has completed at least 30% of the construction and development
    • Project requires last mile funding – sufficient to complete construction
    • Project which is a part of a RERA registered project.
  • Nature of the funding: 
    • The Fund expects to primarily structure its investments in the form of Non-Convertible Debentures.
    • This funding shall be used only for completion of the stalled project and for purposes as approved.
  • Funds raised so far: Rs 15,530 crore with an aim to provide priority debt financing for the completion of stressed, brownfield and RERA-registered residential projects that fall in the affordable, mid-income housing category.
News Source: Indian Express pib

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