Owners will have access to loans of up to $15 million with interest rates fixed at 4.93 per cent over a 10-year period.

Repayments will begin once the work is completed.

"The government takes the safety of South Australian residents seriously," Planning Minister Nick Champion said.

"We are committed to reducing the risk of potentially combustible cladding on private buildings."

The cladding issue arose in 2017 when a fire raged through the 24-storey Grenfell Tower apartment building in West London, killing 72 people.

It spread rapidly up the building's exterior fuelled by its combustible aluminium composite panel cladding.

The fire prompted an audit of 17,000 corporate and publicly owned buildings in SA with 126 found to warrant further investigation, including 52 which had some level of aluminium cladding.

Ultimately only two were considered high risk and requiring immediate remedial work.

The new loan scheme will take applications from early 2023 with funding available for those with an extreme or high-risk rating.

Buildings identified as moderate risk will be considered on a case-by-case basis.

Australian Associated Press