Low and no interest loans offered to low-income earners in Adelaide's north

A not-revenue driven account association has opened an outlet at Salisbury in Adelaide's northern rural areas to help low-wage workers better oversee obligation.

The Good Money store has been working in Salisbury for around two weeks, and will be formally propelled today.

It will give no-interest advances of up to $1,200 and credits of up to $3,000 with an interest rate of 5.99 for each penny.

The store's guardian organization is Good Shepherd Microfinance and CEO, Adam Mooney, said 97 for every penny of advances are completely reimbursed.

"It's not just a monetary exchange, it's additionally an open door for pride, for self regard to ascend, to look at some individual without flinching and say 'I regard you, I esteem you, I believe you', and that is worth such a great amount in somebody's life," he said.

Great Shepherd Microfinance was made by the Good Shepherd Sisters in 1981 in Victoria.

The principal Good Money store opened in Geelong in 2012, trailed by stores in Collingwood and Dandenong.

The Salisbury store is the association's first business outside Victoria.

Mr Mooney said Salisbury's normal wage level, unemployment rate, and the looming conclusion of Holden all added to picking the area.

"Be that as it may, we likewise took a gander at the craving of both the City of Playford and Salisbury to develop into the future," he said.

Most of the organisation's capital comes from National Australia Bank, which is providing $130 million for loans, interest free.

The South Australian Government has committed $3.68 million over the next four years, which the organisation says will contribute to operating costs.

"For many households, the cost of living is increasing and it can be a stretch to find enough to go around," the Minister for Communities and Social Inclusion Zoe Bettison said.

"The temptation is to resort to payday lenders as a quick fix ... with crippling interest rates leaving many people in a situation where their debt spirals out of control."

Good Shepherd Microfinance aims to provide a safer alternative to the payday loan schemes that often attract high interest rates.

"Very soon [people] find themselves spending everything they can to service that loan and then need to take out another loan, and another loan", Mr Mooney said.

"That continuous cycling of that debt can lead to interest rates of up to 300, 350 per cent within a year."

In Collingwood, the Good Money store has pushed out several nearby payday lenders.

"There has been a significant reduction in the number of high street payday lenders in and around Collingwood," Mr Mooney said.

"We don't ever want to put anyone out of business, we just hope that payday lenders can offer fair, safe and responsible credit at an affordable rate."

A week ago the Federal Government announced a review of the payday lending industry.

The five month investigation will examine the effectiveness of current laws covering payday lenders and providers of small amount credit contracts.

The announcement came just days after Westpac followed the other major banks by cutting ties with the payday lending sector.