The Kerala Assembly on Thursday (October 9, 2025) passed the Kerala Single Dwelling Place Protection Bill 2025 aimed at protecting families from losing their mortgaged single dwelling place on account of non-repayment of loans. Industries Minister P. Rajeeve, who replied to the discussions in the absence of the Chief Minister, said that the State government has created a law to protect people from losing their dwelling places while the Union government earlier this year removed an entire Section from the Disaster Management (DM) Act to deny loan waiver to persons affected by disasters of severe magnitude like the Wayanad landslides.“This is one of the most important legislations in the history of the Assembly. The plight of the poor families who were inhumanly evicted from their only home for failing to repay a loan and left on the streets led the government to frame this law. The situation was a result of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act enacted by the BJP government in 2002. Under this law, all those who had availed a loan above ₹1 lakh were treated in the same manner. The Congress-led Union governments which followed also did not take steps to amend the Act,” said Mr. Rajeeve.Though the Kerala Assembly had in the past unanimously demanded the Union government to amend some of the clauses, it was not heeded to. As per the clauses of the proposed Kerala Single Dwelling Place Protection Bill, those who have availed a loan amount not exceeding a maximum of ₹5 lakh are eligible for protection, with the government taking over the liability. The total repayment amount, including the loan amount, interest, penal interest and other incidental expenses, should not exceed a maximum of ₹10 lakh.Except for the property mortgaged, the debtor and family, either himself or jointly, should not have other properties or have other means for repayment. Dwelling place protection committees will be set up at the State and district levels for the purpose. Any person who wants to get benefits under the Act will have to submit an application with allied documents before the district committee, which will conduct a preliminary inquiry and take necessary conciliation measures for amicably resolving the repayment liabilities. Published - October 09, 2025 05:18 pm IST