The government's to issue loans of up to a thousand euro, to get people to turn away from moneylenders.

A range of agencies like St Vincent dePaul and the Money Advice and Budgeting Service are set to work on the scheme, which it's hoped could begin in September.

The Personal Microcredit Scheme is being spearheaded by the Department of Social Protection.

It will see loans being approved 'within an hour' with just a few checks on people's credit background.

The money will be rolled out through post offices and credit unions around the country.

Interest rates of up to 12 per cent will be applied to the loans, which compares to rates of up to 188 per cent on loans from some private firms.

A source has told the Irish Independent that the aim is to take moneylenders 'out of the loop', and provide 'hassle-free loans' to low and middle-income families.

Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News: