Three Authorities to Provide Interest Subsidies for Eligible Personal Consumption Loans

Recently, the Ministry of Finance (MOF) and two other authorities have issued the Implementation Plan for the Fiscal Interest Subsidy Policy for Personal Consumption Loans (the "Plan").

The Plan specifies that, from September 1, 2025, to August 31, 2026, the portion of personal consumption loans (excluding credit card transactions) issued by lending institutions to individual residents that is actually used for consumption—and for which the lending institutions can verify the borrower's related consumption transaction information via loan disbursement accounts or other means—will be eligible for interest subsidies in accordance with regulations. According to the Plan, the subsidy scope includes single transactions of less than CNY 50,000, as well as transactions of CNY 50,000 or above for key consumption areas such as household automobiles, elderly care and childbirth support, education and training, culture and tourism, home furnishings and decoration, electronic products, and healthcare services. For single transactions exceeding CNY 50,000, the maximum subsidized consumption amount per transaction is capped at CNY 50,000. In terms of subsidy standards, the Plan specifies an annual subsidy rate of one percentage point, with the maximum not exceeding 50% of the interest rate in the loan contract. The interest subsidy funds will be borne 90% by the central government and 10% by provincial-level governments.



(Source: http://jrs.mof.gov.cn/zhengcefabu/phjr/202508/t20250812_3969839.htm)

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