China Expands Interest Subsidies for SMEs and Personal Consumption Loans to Boost Domestic Demand

Published: Aug 21, 2026 13:52

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According to the Ministry of Finance’s official website, the Ministry of Finance, the People’s Bank of China, and the National Financial Regulatory Administration issued a notice on matters related to further improving fiscal-financial coordination policies to boost domestic demand. The notice stated that the scope of interest subsidies will be expanded. Newly issued working capital loans to eligible small, medium, and micro private enterprises will be included in the policy support scope for interest subsidies on SME loans, with the central government providing an interest subsidy at an annualized rate of 1 percentage point based on the principal of the working capital loan, for a term of no more than 2 years. Newly originated credit card installment businesses of various types, including special installment plans, consumption installment plans, and cash advance installment plans, will be included in the policy support scope for fiscal interest subsidies on personal consumption loans, with an interest subsidy rate of an annualized 1 percentage point. Credit limits will be appropriately increased. The upper limit of the loan amount eligible for interest subsidies on SME loans for a single borrower at a single handling institution will be raised from 50 million yuan per year to 75 million yuan. The upper limit of the loan amount eligible for interest subsidies on loans to service-sector business entities for a single borrower at a single handling institution will be raised from 10 million yuan per year to 20 million yuan. The annual cumulative upper limit of interest subsidies that each borrower may receive for personal consumption loans and credit card installment businesses at a single handling institution will be raised from 3,000 yuan per year to 5,000 yuan per year.

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