The Cabinet on Saturday gave its approval to a draft Bill that aimed at protecting people who risk losing their only house on account of loan defaults.
The provisions of the Bill are designed to apply to cases where the committees concerned have concluded that the repayment was hit due to reasons not under the control of the loanee.
The Bill seeks to offer legal protection, subject to stringent conditions, to people whose annual income is below ₹3 lakh and cases where the total loan amount does not exceed ₹5 lakh and the fine and penal interest is within ₹10 lakh, the government said.
The significant legislation has been mooted amid growing concern over reports of families facing attachment of their houses by banks over unpaid loans.
Published – September 13, 2025 09:24 pm IST
