In a move to further bolster consumption, China's Ministry of Finance (MOF) on Tuesday announced extension of the existing interest subsidy policies for loans to business entities in the service sector and for personal consumption loans up to the end of 2026.

Under a plan unveiled last August, borrowers may receive interest rebates of 1 percentage point annually for no more than one year, according to Vice Minister of Finance Liao Min at a press conference in Beijing.
The coverage of the service-sector loan subsidy policy, notably, has been expanded to include digital, green and retail sectors, with the maximum loan amount eligible for subsidies per borrower raised from 1 million yuan (143,700 U.S. dollars) to 10 million yuan and the subsidy cap raised to 100,000 yuan.
The action plan originally targeted service sector businesses in the eight categories of catering and accommodation, health care, elderly care, childcare, housekeeping, culture and entertainment, tourism and sports.
The personal consumption loan subsidy policy will include credit card installment services, removing sectoral restrictions.
"For individual consumers, the celling on interest subsidies for a single transaction has been raised. The amount of interest subsidy a consumer can receive for a single transaction at a bank has been raised from 500 yuan to 3,000 yuan, thereby better meeting people's needs for large-scale consumption and helping to boost purchasing power," he said.
Liao said the program will cover more financial institutions, allowing eligible borrowers to apply directly to these banks.
"The number of financial institutions eligible to operate this business has expanded from nearly 20 to over 500 across the nation. The policy has shifted from supporting traditional consumption to serving new scenarios and new business models, achieved broad coverage in urban and rural areas and integrated online and offline services in a bid to benefit a wider range of business entities and the general public," Liao said.
The plan forms part of China's broader efforts to stimulate services consumption and cultivate new growth drivers.