The SWAMIH (Special Window for Affordable and Mid-Income Housing) fund was established in 2019 to tackle stalled, stressed, and brownfield housing projects aimed at the affordable and mid-income segments. This fund provides priority debt financing, ensuring the timely completion of these projects.
The second edition, known as SWAMIH 2.0, has been announced with a budget of ₹15,000 crore. It aims to expedite the completion of an additional 1 lakh housing units, further emphasizing the need to provide homes for middle-class families managing both EMIs and rents.
As of now, the SWAMIH fund has successfully completed 50,000 housing units in stressed projects, with keys handed over to homeowners. Furthermore, an additional 40,000 units are anticipated to be completed by 2025, demonstrating the fund's effectiveness.
This fund significantly alleviates the burden on families grappling with EMIs for stalled housing projects while simultaneously paying rent for temporary accommodations. By ensuring the timely delivery of homes, it reduces their financial stress.
The recent budget introduced an interest subvention scheme for the middle-income group, along with tax benefits such as an exemption on income up to ₹12 lakh for self-occupied property buyers. These initiatives have made homeownership more accessible and affordable.
Despite the progress, the affordable housing sector faces several challenges, including high-interest rates, outdated definitions of affordable housing, and stagnant housing caps. These factors hinder developers' efforts to meet housing demands.
Experts recommend revising the housing cap, simplifying taxation, and encouraging reforms in rental housing. Such measures would promote a sustainable housing ecosystem and ease compliance for property investors.
The SWAMIH fund provides essential financial support to complete stalled projects, ensuring liquidity and enabling developers to fulfill their commitments. This boosts confidence among stakeholders in the housing sector and fosters a more stable market.
The real wealth of a nation lies in the happiness of its people, which begins with a secure and stable home.
Q1. What is the primary purpose of the SWAMIH fund?
Answer: The SWAMIH fund aims to provide financial support for stalled, stressed, and brownfield housing projects, ensuring the completion of affordable housing for mid-income families.
Q2. How much funding is allocated for SWAMIH 2.0?
Answer: SWAMIH 2.0 has been allocated ₹15,000 crore to accelerate the completion of additional housing units, addressing the needs of middle-class families.
Q3. How many housing units have been completed under SWAMIH?
Answer: So far, SWAMIH has completed 50,000 housing units, with an expectation of 40,000 more by 2025, significantly aiding homeownership.
Q4. What challenges does the affordable housing sector face?
Answer: Key challenges include high interest rates, outdated definitions of affordable housing, and stagnant housing caps, which complicate developers' efforts to meet demands.
Q5. What reforms are necessary for affordable housing?
Answer: Reforms needed include revising housing caps, simplifying tax regulations, and promoting rental housing to create a sustainable housing environment.
Question 1: What does SWAMIH stand for?
A) Special Window for Affordable Housing
B) Special Window for Affordable and Mid-Income Housing
C) Special Window for Mid-Income Housing
D) Special Window for Stressed Housing Projects
Correct Answer: B
Question 2: How much funding is allocated for SWAMIH 2.0?
A) ₹10,000 crore
B) ₹15,000 crore
C) ₹20,000 crore
D) ₹25,000 crore
Correct Answer: B
Question 3: How many housing units are expected to be completed by 2025 under SWAMIH?
A) 30,000
B) 40,000
C) 50,000
D) 60,000
Correct Answer: B
Question 4: What is a major challenge for affordable housing?
A) Low demand
B) High interest rates
C) Lack of developers
D) High land prices
Correct Answer: B
Question 5: What reform is recommended for the housing sector?
A) Increasing housing caps
B) Simplifying taxation
C) Reducing housing projects
D) Limiting rental housing reforms
Correct Answer: B
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