National Australia Bank (ASX:NAB) said the federal government's AU$48.7 million funding boost to the no-interest loan (NIL) program will enable more Australians with lower income to access interest-free credit for essential needs, the bank said in a Wednesday statement.

Delivered by not-for-profit Good Shepherd Australia New Zealand, with capital provided by the bank, the program offers interest-free loans of up to AU$2,000 for household essentials such as appliances, furniture, education, and medical expenses, the bank said.

Additionally, NILs for vehicle loans of up to AU$5,000 will cover motor vehicles, mobility scooters, registration, and maintenance costs, the bank added.