Kerala Cabinet Approves Bill to Safeguard Housing Rights

The Kerala Cabinet has approved a draft bill to protect individuals from losing their homes due to loan defaults. The bill targets financially strained borrowers, offering legal protection to those with income under Rs 3 lakh and loans below Rs 5 lakh from banks or cooperative societies.

The Kerala Cabinet has given the green light to a draft bill designed to safeguard the housing rights of individuals facing the threat of losing their sole residence due to loan defaults.

This significant legislative development comes in response to escalating reports of families in financial distress witnessing the attachment of their homes by banks over unpaid loans. The bill aims to shield such individuals if their loan repayment delays are due to factors beyond their control.

According to the Chief Minister's Office, the bill proposes offering legal protection, under strict conditions, to those earning below Rs 3 lakh annually and involved in loans not exceeding Rs 5 lakh. The legislation applies to loans taken from public sector banks, cooperative banks, and cooperative societies.

(With inputs from agencies.)