On August 21, the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration jointly issued a notice on further strengthening fiscal and financial coordination to boost domestic demand. The policy introduces four key measures aimed at broadening the reach of interest subsidy programs.

First, the subsidy coverage is being expanded. New working capital loans extended to eligible small, medium, and micro private enterprises will now be included in the SME loan interest subsidy program. The central government will provide an annual subsidy of 1 percentage point on the loan principal, with a maximum duration of two years. Additionally, newly issued credit card installment products, including dedicated installments, consumption installments, and cash advance installments, will be incorporated into the personal consumption loan subsidy framework, also at an annual rate of 1 percentage point.

Second, the number of handling institutions is increasing. The scope of institutions eligible to manage the SME loan subsidy and the services sector loan subsidy programs will be expanded to include 21 national banks, as well as city commercial banks, rural cooperative financial institutions, private banks, and foreign banks with a financial regulatory rating of 3A or above.

Third, the subsidy limits are being raised. For a single borrower at a single handling institution, the annual cap on loans eligible for the SME subsidy will increase from 50 million yuan to 75 million yuan. For the services sector, the annual cap will rise from 10 million yuan to 20 million yuan. Meanwhile, the cumulative annual subsidy limit per borrower for personal consumption loans and credit card installment business at a single institution will be raised from 3,000 yuan to 5,000 yuan.

Fourth, other provisions are clarified. The notice will take effect on August 1, 2026. Matters not otherwise specified will continue to follow the relevant provisions of previously issued documents concerning the optimization of personal consumption loan subsidies, the implementation of SME loan subsidies, and the optimization of services sector loan subsidies.