MOF and Other Authorities Release a Package of Loan Interest Subsidy Policies

Recently, the Ministry of Finance (MOF) and other authorities have issued five policy documents, including the Circular on Matters Concerning the Optimization of the Implementation of the Fiscal Interest Subsidy Policy for Personal Consumption Loans, the Circular on Optimizing the Implementation of the Fiscal Interest Subsidy Policy for Equipment Upgrade Loans, the Circular on the Implementation of the Interest Subsidy Policy for Loans to Micro, Small and Medium Enterprises, the Circular on Optimizing the Implementation of the Interest Subsidy Policy for Loans to Business Entities in the Service Sector, and the Circular on Implementing the Special Guarantee Program for Private Investment.

Among them, the Circular on the Implementation of the Interest Subsidy Policy for Loans to Micro, Small and Medium Enterprises provides that, for eligible fixed-asset loans granted by handling banks to micro, small, and medium private enterprises on or after January 1, 2026, as well as funds from new policy-based financial instruments used by such enterprises to participate in projects, the central government shall provide interest subsidies based on the loan principal at an annualized rate of 1.5 percentage points for a term of not more than two years, with the maximum subsidized loan amount capped at CNY 50 million per enterprise. The policy is tentatively set to be implemented for one year and may be extended depending on circumstances. The same loan shall not be eligible for overlapping interest subsidies under other central government fiscal interest subsidy policies.



(Source: http://jrs.mof.gov.cn/zhengcefabu/phjr/202601/t20260119_3982160.htm

http://jrs.mof.gov.cn/zhengcefabu/phjr/202601/t20260119_3982162.htm

http://jrs.mof.gov.cn/zhengcefabu/phjr/202601/t20260119_3982158.htm

http://jrs.mof.gov.cn/zhengcefabu/phjr/202601/t20260119_3982164.htm

http://jrs.mof.gov.cn/zhengcefabu/phjr/202601/t20260119_3982163.htm)

Note: The link to the Chinese official website of the document is for your reference.