Two Loan Subsidy Policies Unveiled! Who Can Apply, How to Apply, Official Response
By: Ren Yuxi, Editor-in-Chief
August 13th, the State Council held a press conference to introduce two loan subsidy policies for personal consumption loans and business loans.
According to Vice-Minister of Finance Liao Min, the personal consumption loan subsidy policy directly benefits the general public and is the central government's first initiative to subsidize personal consumption loans. The two policies aim to further strengthen financial coordination, channel more credit funds into the consumer sector, reduce the borrowing costs for residents and business owners, and ensure the stability and improvement of people's livelihoods.
What are the conditions?
On August 12th, the Ministry of Finance jointly released the "Implementation Plan for Personal Consumption Loan Subsidy Policy" and the "Implementation Plan for Business Loan Subsidy Policy" with the People's Bank of China and other relevant departments. Through financial coordination, they will support consumption promotion and expand domestic demand.
According to Liao Min, the personal consumption loan subsidy policy applies to loans used for actual consumption by residents, including daily expenses of less than 5 million yuan, as well as larger expenses such as cars, education, healthcare, and home appliances. The interest rate is 1% per annum, roughly one-third of the current commercial bank's personal consumption loan interest rates.
The business loan subsidy policy applies to loans provided by banks to businesses in key consumer sectors such as food and beverage, accommodation, healthcare, elderly care, education, entertainment, tourism, and sports. The interest rate is also 1% per annum, and the maximum amount of subsidized loans for each household is 100,000 yuan.
Many consumers and small business owners are concerned about the conditions for applying these two loan subsidy policies. In actual implementation, applicants must meet certain requirements...
Liao Min emphasized that residents who enjoy personal consumption loan subsidies must have genuine consumption behavior. From September onwards, any consumer spending, whether small or large, can be subsidized as long as it is used for actual consumption and meets the policy's conditions.
Business owners who enjoy business loan subsidies must also meet certain requirements...
The two subsidy policies are designed to be simple and easy to implement, with all related work completed by the lending institutions and local government departments. The goal is to minimize the operational burden on borrowers.