On August 12th, it was learned that the Ministry of Finance, the People's Bank of China, and the State Administration for Financial Regulation have recently formulated the "Implementation Plan for Financial Subsidy Policies for Personal Consumption Loans", and nine departments including the Ministry of Finance and the Ministry of Civil Affairs have formulated the "Implementation Plan for Loan Subsidy Policies for Service Industry Operators". The two loan subsidy policy implementation plans were released on August 12th. The relevant person in charge of the Ministry of Finance stated that by implementing the personal consumption loan financial subsidy policy, we will further strengthen the coordination and linkage between finance and finance, support residents' consumption with "real money and silver", reduce the cost of consumer credit, stimulate residents' consumption potential, and support the expansion of domestic demand. Along with the previously introduced policies such as exchanging old for new consumer goods, as well as the service industry operating entity loan subsidy policy introduced by the Ministry of Finance at the same time, we will form a "combination fist" to work together from the demand and supply sides, strengthen consumption, and consolidate the sustained positive development trend of the economy. The Implementation Plan for Financial Subsidy Policy on Personal Consumption Loans proposes to reduce the cost of personal consumption loans. From September 1, 2025 to August 31, 2026, residents who use personal consumption loans (excluding credit card business) issued by loan agencies for actual consumption, and the loan agencies can identify the borrower's relevant consumption transaction information through loan issuance accounts, can enjoy the subsidy policy according to regulations. The scope of interest subsidy includes consumption of less than 50000 yuan per transaction, as well as consumption in key areas such as home cars, elderly care and childbirth, education and training, cultural tourism, home decoration, electronic products, health and medical care with a single transaction of 50000 yuan or more. For a single consumption of over 50000 yuan, interest subsidies will be provided up to a limit of 50000 yuan. After the policy expires, research on the implementation effect can be conducted to extend the policy period and expand the scope of support. Regarding the interest subsidy standards, the Implementation Plan for Financial Interest Subsidy Policies for Personal Consumption Loans specifies that the annual interest subsidy ratio is 1 percentage point (calculated based on the actual principal of personal consumption loans used for consumption that meet the conditions), and the maximum shall not exceed 50% of the loan contract interest rate. The central and provincial governments shall respectively bear 90% and 10% of the interest subsidy funds. The loan contract interest rate needs to comply with the corresponding interest rate self-discipline agreement. During the policy implementation period, each borrower can enjoy a cumulative interest subsidy limit of 3000 yuan (corresponding to a cumulative consumption amount of 300000 yuan that meets the conditions) for all personal consumption loans at a loan agency. Among them, the cumulative interest subsidy limit for personal consumption loans below 50000 yuan per transaction at a loan agency is 1000 yuan (corresponding to a cumulative consumption amount of 100000 yuan that meets the conditions). In addition, regarding loan handling institutions, the Implementation Plan for Financial Subsidy Policy for Personal Consumption Loans specifies that it includes 6 state-owned large commercial banks, 12 national joint-stock commercial banks, and 5 other personal consumption loan issuing institutions. Encourage local finance departments to provide financial subsidy support to other financial institutions engaged in personal consumption loan business based on actual situations, and expand policy coverage. The above-mentioned person in charge stated that unlike previous interest subsidy policies that focus on supporting the investment and supply sides, the financial interest subsidy policy for personal consumption loans introduced this time focuses on the demand side, directly benefiting individual consumers and reducing the cost of personal consumption loans. The interest subsidy funds are directly deducted by relevant loan agencies when collecting loan interest from borrowers, improving consumer happiness and sense of achievement. In terms of support targets, relying on differentiated customer base such as commercial banks and consumer finance companies, we will widely cover various groups of people such as the working class and flexible employees, and enhance the inclusiveness of policies. 8 types of service industry operating entities can enjoy interest subsidies. The "Implementation Plan for Loan Interest Subsidy Policy for Service Industry Operating Entities" clearly stipulates that financial interest subsidies will be given to eligible 8 types of service industry operating entities in the consumer sector for loans. The relevant person in charge of the Ministry of Finance stated that the introduction of the loan interest subsidy policy for service industry operators is mainly based on the following considerations: boosting consumption requires coordinated efforts from both the supply and demand sides, the people have demands for improving the quality and upgrading of service consumption, and service industry operators have expectations for reducing financing costs. In terms of reducing financing costs, the above-mentioned person in charge stated that the majority of service industry operators are small and medium-sized enterprises and individual businesses, which are connected to the livelihoods of practitioners and residents. Sustainable operations are generally influenced by factors such as credit support scale, financing costs, and cash flow stability. The Ministry of Finance takes the lead in implementing the policy of subsidized loans for service industry operators, aiming to provide more low-cost financial resources support for the vast number of service industry operators through the leverage effect of "four or two to pull a thousand pounds", and help further unblock the "capillaries" of the real economy. The "Implementation Plan for Loan Subsidy Policy for Service Industry Operators" clearly defines the scope of support, and loans that meet the following conditions can enjoy the subsidy policy: issued by the handling bank to service industry operators in eight consumption areas, including catering and accommodation, health, elderly care, childcare, home economics, cultural and entertainment, tourism, and sports; From the date of the public release of the "Special Action Plan to Boost Consumption" (March 16, 2025) to December 31, 2025, loan contracts will be signed and relevant loan funds will be disbursed to the operating entities; The loan funds are used in compliance to improve consumer infrastructure and enhance service supply capacity. At the same time, the "Implementation Plan for Loan Subsidy Policies for Service Industry Operators" proposes that after the policy expires, the policy period can be extended and the scope of support can be expanded based on the effectiveness of the implementation. Regarding the interest subsidy standards, the "Implementation Plan for Loan Interest Subsidy Policies for Service Industry Operating Entities" specifies that for loans issued by handling banks to service industry operating entities, the financial department will provide interest subsidies to the operating entities based on the loan principal. The interest subsidy period shall not exceed one year, and the annual interest subsidy ratio shall be one percentage point. The central finance and provincial finance shall respectively bear 90% and 10% of the interest subsidy funds. The maximum loan size that a single household can enjoy subsidized interest can reach 1 million yuan. Related loans include fixed asset loans for improving consumer infrastructure and working capital loans for enhancing service supply capacity. The same loan shall not be eligible for duplicate central government subsidy policies; For those who have already enjoyed the relevant subsidy policies of local finance, this subsidy shall not exceed the actual interest rate level after deducting the existing subsidy. Experts in stimulating effective financing demand suggest that the financial subsidy policies for personal consumption loans and service industry operating entities will focus on both demand and supply, and strengthen coordination with financial policies to further boost consumption and expand domestic demand. Boosting consumption requires not only fiscal efforts, but also sustained efforts. The release of the implementation plans for two loan interest subsidy policies signifies that the policy deployment to boost consumption has entered a deeper and broader field. ”He Daixin, Director of the Finance Research Office at the Institute of Financial Strategy, Chinese Academy of Social Sciences, said. According to Lou Feipeng, a researcher at China Postal Savings Bank, the two loan interest subsidy policies can fully leverage the synergistic advantages of fiscal and financial policies, helping to reduce residents' consumption costs and increase their willingness to consume. At the same time, providing interest subsidies on loans to service industry operators can help better promote their investment and business operations and improve service quality. In addition, Dong Ximiao, Chief Researcher of the China Merchants Association and Deputy Director of the Shanghai Finance and Development Laboratory, stated that the two loan interest subsidy policies send clear policy signals that help boost confidence and promote high-quality economic development. At the same time, it will also stimulate the effective financing needs of relevant business entities and residents, expand the supply of consumer loans and related loans from commercial banks and consumer finance companies, and stabilize interest rates at a reasonable level. (New Society)