FINANCE

China Expands Consumer Loan Subsidies to Boost Spending

Published: Jan. 20, 2026 4:16 p.m. GMT+8

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China has extended a government-backed interest rate subsidy program for consumer loans through the end of this year and expanded it to include credit card installment plans, as Beijing seeks to revive household spending.

The Ministry of Finance, the People’s Bank of China and the National Financial Regulatory Administration said Tuesday that the revised policy runs from Sept. 1, 2025, to Dec. 31, 2026. The program, launched in August, offers a 1 percentage point interest subsidy on eligible loans.

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China extended its interest rate subsidy program for consumer loans to December 31, 2026, and expanded it to credit card installment plans.
Subsidy restrictions by spending category and per-transaction caps were removed; annual subsidy per borrower remains capped at 3,000 yuan per institution.
The program now covers a wider range of lenders, with 90% of subsidy costs paid by the central government and the rest by provinces.

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What Happened When

2026-01-20：: The Ministry of Finance, the People’s Bank of China, and the National Financial Regulatory Administration announced the revised consumer loan interest rate subsidy policy.

AI generated, for reference only