The Government is introducing a new scheme that will make up to $1.2 billion of bank loans available to help businesses reduce or eliminate their dependency on gas.

The Crown will guarantee 80 percent of lending under the Gas Transition Loan Guarantee Scheme, so banks pass on lower interest rates.

Energy Minister Simeon Brown says offering banks the loan guarantee will mean they can give businesses better interest rates. 

"I think the advice we've received around one and a half percent lower - obviously, that will depend on the individual business."

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