The Government is defending softer rules for Buy Now, Pay Later lenders than initially promised.

Providers like AfterPay and LayBuy will soon be made to complete a credit report for new customers.

It had proposed full affordability assessments to force providers to check shoppers can afford debt repayments.

The lenders offer people interest-free loans and make money by charging when payments are missed.

Consumer Affairs Minister Duncan Webb says a full assessment would have been too cumbersome.

"We want to make sure that we get a proportionate regulation, and they do need to check whether there's defaults and other card and things like that."

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