BEIJING, Aug. 12 -- China will provide interest subsidies for qualifying personal consumption loans in the country's latest effort to boost consumption, according to an official announcement on Tuesday.
The provisions outlined in the announcement, issued jointly by the Ministry of Finance, the People's Bank of China and the National Financial Regulatory Administration, will be implemented from Sept. 1 this year to Aug. 31, 2026.
During this period, individuals may receive interest subsidies on portions of personal consumption loans, excluding credit card business, issued by lending institutions -- provided the funds are actually used for consumption purposes and transactions can be verified through loan disbursement accounts.
Covered expenditures include single transactions under 50,000 yuan (about 7,001 U.S. dollars), as well as priority sector transactions of 50,000 yuan or more involving household automobiles, elderly care and childbirth support, education and training, culture and tourism, home furnishings and decoration, electronics, and health and medical services. For single transactions exceeding 50,000 yuan -- the maximum subsidized consumption amount per transaction is capped at 50,000 yuan.
The subsidies may be extended or expanded to consumption in more areas based on implementation outcomes, the announcement said.
The subsidy standard specifies an annual subsidy rate of 1 percentage point, not exceeding 50 percent of the loan contract interest rate, which must comply with applicable self-regulatory rate requirements.
The central government will cover 90 percent of subsidy funds with provincial governments contributing 10 percent. Individual borrowers face a cumulative subsidy limit of 3,000 yuan per lending institution, including a sub-limit of 1,000 yuan specifically for transactions under 50,000 yuan at a single institution.
Qualified lending institutions comprise six state-owned commercial banks, 12 national joint-stock commercial banks and five designated consumer lenders. Local governments are encouraged to extend subsidies to regional financial institutions to broaden policy coverage.
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