Kerala to Table Bill Protecting Low-Income Families from Losing Their Only Home

Thiruvananthapuram: The Kerala government to introduce Kerala Single Dwelling Protection Bill, 2025, aimed at protecting the primary residences of individuals who face financial setbacks beyond their control in the legislative assembly.

The new law will ensure that in cases where a person’s income is below Rs 3 lakh annually, and the total outstanding loan amount—including principal, interest, and penalties—does not exceed Rs. 10 lakh, their sole dwelling cannot be seized or forcibly sold due to repayment defaults caused by circumstances such as job loss or medical emergencies, provided the default is not wilful. 

The bill covers loans from scheduled banks, cooperative banks, public sector banks, and treasury-backed lending institutions. It introduces strict conditions to ensure that only genuine cases of financial distress benefit from this protection.

To support its implementation, the government plans for a separate fund pool. This upcoming bill is seen as a significant move toward securing basic housing rights for vulnerable citizens and providing them legal protection against losing their homes due to unforeseen financial hardships.