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.
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