Wakefield Council is being asked to help people on low incomes by approving an annual grant to the White Rose Credit Union.
The council’s cabinet will discuss a report on Tuesday that recommends giving the credit union £64,500 on a yearly basis.
The money would pay for two members of council staff to help with the running of the independent credit union.
Cabinet members are also being asked to offer the union a discounted rate to be based at Wakefield One. White Rose, which is currently proposing a merger with Leeds City Credit Union, provides cost-effective loans to people in the Wakefield district.
Coun Denise Jeffery, cabinet member for regeneration and economic growth, said: “The White Rose Credit Union provides an essential service for local people, and helps to deter the use of unsuitable services such as doorstep lenders whose high interest rates can lock people into a cycle of debt.”