Microfinance manager Tracie Driscoll was talking to the Bendigo Advertiser about National Australia Bank and Good Shepherd's 'Stop small problems getting big' campaign, which aims to raise awareness of their interest-free loans program.

She said people on low incomes were often trapped in vicious cycles that prevented them from saving.

Ms Driscoll used an example of someone using an old fridge that burned through energy, which may significantly increase their bills and prevent them from saving for a new one.

She said providing them with a small loan to buy a new fridge would lower people's bills and prevent them from having to borrow money from payday lenders - which often charged exorbitant interest rates - when the old fridge stopped working.

"It's a fantastic way of low income people being able to afford white goods or essential household items most other people take for granted," she said.

"It can make a huge difference, especially if you're talking about energy-efficient goods, with the price of electricity."

The program has been operating since 2007, but Ms Driscoll said most people were not aware of its existence.

She said the campaign aimed to inform people that interest-free loans were available.

People can apply for loans of between $300 to $1200 for essential goods and services, including washing machines, car repairs and registration costs.

Ms Driscoll said to apply for a loan, people could come to her organisation to discuss their requests with a financial adviser.

Provided applicants could prove they were low income earners and demonstrate they could make fortnightly repayments of $20 to $30, they were usually granted the loan within a few days.

She said the service paid for goods directly, rather than giving people cash.

"Once you've (repaid) your loan you will receive a certificate and a letter in the mail and you can come back and borrow again," she said.

"It's pretty unique."