Overview
- Overdue personal credit entries of no more than 10,000 yuan incurred from 2020 through 2025 will be removed once fully repaid by March 31, 2026.
- The People’s Bank of China will administer the policy automatically via its Credit Reference Centre in phased rollouts starting in 2026 with no individual applications required.
- Vice Governor Zou Lan said the measure will restore borrowers’ credit standing, support high-quality growth, and improve lenders’ ability to assess personal credit and inclusive finance.
- The announcement follows weaker November figures, including new bank lending that missed expectations as household loans contracted and retail sales fell to their lowest since the end of zero‑COVID curbs.
- Benchmark loan prime rates were kept unchanged for a seventh month in December, and national leaders have flagged additional support next year, including fiscal stimulus and possible cuts to interest rates and banks’ reserve requirement ratios.