Loan Default Protection

LOAN DEFAULTS : EXPLAINED

The Kerala Single Dwelling Place Protection Bill aims to protect families from losing their homes due to loan defaults by preventing banks and financial institutions from seizing single dwelling properties under certain conditions. It covers loans up to Rs 5 lakh and provides relief to low-income borrowers with limited land and income. The bill establishes committees to review cases and allows the government to take over debts or absorb outstanding loans into housing schemes. This is a pioneering state-level effort following the Centre’s inaction on amending the SARFAESI Act to protect small borrowers.