The Government's to reduce the number of hurdles needed to take out a loan

From today, it's removing the affordability regulations from the Credit Contracts and Consumer Finance Act and updating the Responsible Lending Code.

The change will give lenders more flexibility to decide how they assess whether someone can afford to borrow.

Commerce and Consumer Affairs Minister Andrew Bayly says the existing rules were too prescriptive.

He says there needs to be a balance between having easy access and ensuring people aren't be subject to bad practices.