Individual Consumer Loan Interest Policy Unveiled, Covering Home Appliances, Automobiles, and More

　August 12, the Ministry of Finance, People's Bank of China, and Financial Institutions Regulatory Bureau issued the Individual Consumer Loan Interest Policy Implementation Plan. The plan proposes that from September 1, 2025, to August 31, 2026, individual consumers who use loans issued by financial institutions for personal consumption (excluding credit card transactions) will be eligible for interest subsidies. To qualify, borrowers must demonstrate actual consumption of the loan funds through identified transactions, such as account statements or receipts. The subsidized interest range includes single transactions up to ¥50,000 for home appliances, automobiles, elder care, education, culture, tourism, household goods, electronics, and healthcare. For transactions exceeding ¥500,000, the subsidy will be capped at ¥500,000. After the policy expires, it may be extended or expanded based on implementation effectiveness.

　The interest rate subsidy is set at 1% of the eligible loan principal (calculated based on actual consumption), with a maximum limit of 50% of the contracted loan interest rate. The central government and provincial governments will jointly bear the interest subsidies, with a ratio of 9:1. Loan interest rates must comply with relevant self-regulatory agreements. During the policy period, each borrower can enjoy cumulative interest subsidies up to ¥3,000 (equivalent to ¥300,000 in consumption) at one financial institution. For transactions below ¥50,000, the cumulative interest subsidy limit is ¥1,000 (equivalent to ¥10,000 in consumption).