In the wake of recurring instances of families losing their homes to financial institutions for non-payment of loans, the state government has notified the Kerala Single Dwelling Place Protection Act, 2025. The notification says that the act will prevent families from losing their single dwelling place through eviction due to non-repayment of loans raised from financial institutions by mortgaging homes.

The Act lays down a set of eligibility criteria for families who can avail of protection from eviction. It states that the loan amount shall not exceed ₹5 lakh. The total repayment amount, including the loan amount, interest, penal interest and other incidental expenses, shall not exceed the maximum of ₹10 lakh.

The protection under this Act will be applicable only if it is certain that, except for property mortgaged, the debtor and family, either himself or jointly, shall not have other properties or shall not have other means for repayment. The total extent of land belonging to the debtor and family, either himself or jointly, shall not exceed five cents in a municipal/ corporation area or 10 cents in a gram panchayat.

The annual gross income of the debtor and family shall not exceed the maximum of ₹3 lakh. Aadhaar is mandatory to avail benefits under this act. 

The government has stated that the protection shall not be available to those loans raised except for the purposes of education, treatment, marriage, house building/house renovation, agriculture and creation of livelihood for self-employment.

The family cannot benefit from the act more than once if the government assumes the repayment liability, fully or partially. A seven-member District-Level Dwelling Place Protection Committee will be constituted to oversee the process and consider the applications. The District Development Commissioner will head it and will have one representative each from the cooperative and banking sectors, nominated by the Government. The Lead District Manager will also be a member of this panel.

The committee will take action within 30 days of receiving an application, and if there is sufficient reason, it will be extended for 15 days. When the Protection Committee is satisfied that there is no means for the debtor or the family members to make repayment, or when there is no scope for conciliation, it shall submit recommendations, including the government taking over the repayment amount fully or partially, to the State Level Dwelling Place Protection Committee.

The state-level committee will have five members, headed by the Secretary, Department of Planning and Economic Affairs. The state committee can decide either to recover the dwelling place by discharging the liabilities of the financial institution and by taking over the repayment amount, fully or partially, or to provide another dwelling place by including it in any of the rehabilitation schemes or housing schemes of the government.

The government will constitute a fund, ‘The Kerala Dwelling Place Protection Fund’, for the purpose of this act. The amount to be credited to the fund will be the grant from the government, donations which may be received from individuals, organizations and institutions, the amount which is to be earmarked by the government from time to time out of the Chief Minister's Distress Relief Fund, contributions from the co-operative sector and the amounts to be received from other sources, as prescribed.