Kerala’s government took a big step Tuesday to shield families from losing their only home over unpaid loans. Lawmakers in the state assembly introduced the Kerala Single Dwelling Place Protection Bill, 2025, which promises state help to pay off debts and keep roofs over heads.
Industries and Law Minister P. Rajeev presented the bill on behalf of Chief Minister Pinarayi Vijayan. Under this new measure, if banks, cooperatives, or other lenders try to seize a family’s sole residence due to loan defaults, the Kerala government steps in. It will cover the full or partial repayment to stop the attachment.
Rajeev called the bill a “historic” move during the session, but things got rowdy. Opposition leaders from the UDF interrupted with protests, forcing lawmakers to refer the bill to the Assembly Subject Committee for review. It heads back for debate next week.
To qualify for protection, families face strict rules designed to target those truly in need. The original loan can’t top 5 lakh rupees, and total dues stay under 10 lakh rupees. Families must own no other properties or ways to repay, with land limited to five cents in cities or 10 cents in rural spots. Their yearly income caps at 3 lakh rupees, and loans must go toward essentials like education, medical treatment, weddings, home building or fixes, farming, or starting a small business. No selling off property after taking the loan, and everyone needs an Aadhaar card.
The bill sets up a two-level system to handle cases. At the district level, a Dwelling Place Protection Committee—led by the District Development Commissioner—checks details, tries to mediate, and suggests relief options. Then, the state-level committee, headed by the Planning and Economic Affairs Secretary, makes the final call. It can settle debts, send payments to lenders via district collectors, and hand back property titles once the threat lifts.
If a family can’t possibly repay on their own, the state committee might recommend the government takes over the full or partial dues. It could also link families to Kerala’s housing programs for extra support and rehabilitation.
People unhappy with the state committee’s decision get 30 working days to appeal to the Chief Secretary or an Additional Chief Secretary. This push for home protection in Kerala highlights growing concerns over loan defaults and family financial struggles in India. ()
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