How to Enjoy Subsidy for Personal Consumption Loans? A Practical Guide
Correspondent: Zhang Shoulin, Editor: Zhang Yiming
On August 12th, the Ministry of Finance, People's Bank of China, and the Financial Consumer Protection Bureau jointly released the "Implementation Plan for Fiscal Subsidy Policy on Personal Consumption Loans", providing fiscal subsidies to individual consumers with qualified personal consumption loans.
According to the policy, the subsidized scope includes single transactions below RMB 50,000 in consumer goods such as electronics, home appliances, and healthcare services, as well as household appliances and furniture.
How to Enjoy Subsidy? What Are the Conditions?
To enjoy the subsidy, you must meet certain conditions:
1. The subsidized loan is limited to a portion of the consumer's actual borrowing amount, not the entire loan.
2. The subsidized scope includes two categories:
(1) Single transactions below RMB 50,000 in any consumer goods or services.
(2) Transactions above RMB 50,000 in the following seven fields: household appliances, healthcare services, education and training, cultural tourism, home decoration, electronics, and automotive purchases.
The following situations may not be eligible for the subsidy:
1. If you use your own funds to make a purchase instead of taking out a loan.
2. If you use credit cards to make purchases, as this is explicitly excluded from the policy.
3. If you take out a loan for non-consumer purposes or do not consume the borrowed funds.
4. If your transaction exceeds RMB 50,000 in fields other than the seven specified above.
How Much Subsidy Can I Enjoy?
1. The subsidized amount is calculated based on the actual borrowing amount, and if you do not consume the borrowed funds, the subsidized amount will be zero.
2. The subsidy standard is 1% of the actual borrowing amount, but it cannot exceed 50% of the loan interest rate. For example, if the loan interest rate is 3%, the maximum subsidy would be 1.5% (0.75% of the actual borrowing amount).
3. The overall subsidized amount for individual consumers at a single financial institution is RMB 3,000 (corresponding to cumulative consumer spending of RMB 30,000). Similarly, the maximum subsidized amount for transactions below RMB 50,000 is RMB 1,000 (corresponding to cumulative consumer spending of RMB 10,000).
How to Enjoy the Subsidy?
1. For transactions above RMB 50,000, it is better to have a single large transaction, as this will allow you to enjoy a higher subsidy.
2. Choose a financial institution with a recognized central bank-approved credit rating, such as the six state-owned commercial banks and the twelve nationwide joint-stock commercial banks mentioned below.
Where Can I Apply for Related Services?
You can apply through one of the following institutions:
1. Six state-owned commercial banks:
China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Postal Savings Bank of China, and China Merchants Bank.
2. Twelve nationwide joint-stock commercial banks:
Bank of China, China Everbright Bank, China Guangfa Bank, China Huarong Bank, Bank of Communications, China Minsheng Bank, Bank of Beijing, China CITIC Bank, Shanghai Pudong Development Bank, and Hangzhou Bank.
3. Five other financial institutions:
Shenzhen Front Sea Micro-credit Bank, Chongqing Ant Financial Consumer Finance Company, Recruitment Consumer Finance Company, Xingye Consumer Finance Company, and China Union Consumer Finance Company.
Policy Duration?
The policy period is from September 1st, 2025 to August 31st, 2026. After the policy expires, it may be extended or expanded based on its implementation effectiveness.
Operational Steps?
1. The subsidized funds will be deducted directly from the borrower's loan interest payment by the financial institution and notified to the borrower through mobile text messages, apps, or other channels.