Overview

• The subsidy cuts annual borrowing costs by one percentage point, capped at half the contracted rate and limited to 12 months per loan.
• Businesses in eight targeted service sectors—including catering and tourism—can secure loans up to one million yuan for fixed assets and working capital under contracts signed by December 31, 2025.
• Consumers taking loans for single purchases under 50,000 yuan and higher amounts for car and education financing will benefit from subsidies from September 1, 2025, through August 31, 2026.
• Eighteen state-owned banks and five online platforms such as WeBank and Chongqing Ant will channel the preferential lending under official coordination by the Ministry of Finance, PBoC and financial regulators.
• Officials view the measure as part of a broader consumption effort following a 500 billion yuan re-lending facility and trade-in bond programme, though narrow caps and subdued confidence may limit near-term demand gains.