Plan would enable 76,800 low-cost loans each year to those in financial hardship

Labor has pledged $60m for financial services that divert vulnerable borrowers from high-interest payday lenders.

The policy picks up on the recommendation of a Senate inquiry to expand no interest loans schemes to prevent low-income Australians being plunged into a cycle of debt due to unexpected expenses such as medical procedures and broken household appliances.

Related: Dole recipient paid 884% interest: inquiry demands payday lending shake-up

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