China has rolled out two loan interest subsidy programs to stimulate consumer spending and support service sector businesses, reinforcing efforts to drive economic growth.

A customer (R) shops at a cellphone store in Binzhou, east China's Shandong Province, July 9, 2025. [Photo/Xinhua]

For a 12-month period starting on Sept. 1, eligible individuals can receive interest subsidies on personal consumption loans — excluding credit card debt — provided the funds are used for verified consumption.

This covers single purchase under 50,000 yuan (US$7,001), as well as larger transaction related to household automobiles, eldercare, childbirth support, education, culture and tourism, home furnishings and decoration, electronics, and healthcare. For single transaction over 50,000 yuan, the maximum subsidized consumption amount per transaction is capped at 50,000 yuan. 

The subsidy rate is set at 1 percentage point annually but cannot exceed half of the loan contract's interest rate. The central government covers 90% of the subsidy cost, with provincial governments contributing the remaining 10%. Borrowers can receive up to 3,000 yuan in total subsidies per lender, including a 1,000 yuan limit for smaller purchases.

Separately, an interest subsidy plan for service sector businesses was also announced this week. Companies in eight sectors — including catering and accommodation, healthcare, eldercare, childcare, housekeeping, culture and entertainment, tourism, and sports — can qualify for interest rebates on loans between March 16 and the end of this year that are used to improve infrastructure or expand service capacity.

On Aug. 13, 2025, the State Council Information Office holds a press conference in Beijing on interest subsidy policies for personal consumption loans and lending for service sector business entities. [Photo by Zhang Xin/China SCIO]

Under this program, businesses can get a 1 percentage point annual rebate for up to one year, with the subsidy split 90% from the central government and 10% from provinces. The maximum loan amount eligible for subsidies per business is set at 1 million yuan, which translates to up to 10,000 yuan of subsidies for each business, according to Liao Min, vice minister of finance at a press conference Wednesday. Twenty-one designated banks will manage the application process.

"By fully leveraging the policy's effectiveness and providing tangible support, we aim to help residents spend better, improve service capacity of business operators, and create a virtuous cycle of supply and demand to better meet people's growing needs for a better life," Liao said.