A new policy notice, issued jointly by the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration, outlines enhanced fiscal and financial coordination measures aimed at boosting domestic demand. The directive expands the scope of interest subsidy programs to cover new working capital loans issued to eligible small, medium, and micro private enterprises, with central fiscal support providing an annualized subsidy of 1 percentage point on the loan principal for a period not exceeding two years.
In addition, the policy now includes various new credit card installment products—such as special installments, consumer installments, and cash advance installments—under the personal consumption loan subsidy framework, also at an annualized rate of 1 percentage point. To improve accessibility, the list of designated handling institutions for both the SME loan subsidy and the service industry operator loan subsidy programs has been broadened to include 21 national banks, along with city commercial banks, rural cooperative financial institutions, private banks, and foreign-funded banks that hold a financial regulatory rating of 3A or above.
The policy also raises the borrowing limits under these programs. For a single borrower at a single handling institution, the maximum loan size eligible for the SME loan subsidy has been increased from 50 million yuan to 75 million yuan per year. Similarly, the cap for service industry operators has been raised from 10 million yuan to 20 million yuan annually. For individuals, the cumulative subsidy ceiling for personal consumption loans and credit card installment business at any one institution has been increased from 3,000 yuan to 5,000 yuan per year.
These measures take effect on August 1, 2026. Any matters not explicitly covered in this notice will continue to follow the provisions of previously issued related documents, including the notices on optimizing personal consumption loan subsidies, implementing the SME loan subsidy policy, and refining the service industry operator loan subsidy policy. The joint notice was signed on August 17, 2026.