Three departments including the Ministry of Finance: Fiscal and financial coordination to promote domestic demand policies, which will be officially implemented on August 1

The Zhitong Finance App learned that on August 21, the Ministry of Finance, the People's Bank of China, and the General Financial Supervisory Administration issued the “Notice on Further Accomplishing the Work Related to Fiscal and Financial Cooperation Policies to Promote Domestic Demand”. It was mentioned that new working capital loans issued by eligible micro, small and medium-sized private enterprises will be included in the scope of support for the micro, small and medium-sized enterprise loan interest rate discount policy, and that the central financial administration will provide interest rate discount support based on the principal amount of working capital loans at an annualized rate of 1 percentage point and a period of not more than 2 years. New credit card installment services, such as special credit card instalments, consumer installments, and advance cash installments, are included in the scope of financial interest discount policy support for personal consumption loans. The interest rate discount ratio is 1 percentage point per annum. Expand the scope of loan interest rate discount policies for micro, small and medium-sized enterprises and loan interest rate discount policy management institutions for service industry operators to 21 national banks, urban commercial banks with a financial supervision rating of 3A or above, rural cooperative financial institutions, private banks, and foreign banks. This notice is effective as of August 1, 2026.

The original text is as follows:

Notice on Further Accomplishing the Work Related to Fiscal and Financial Coordination Policies to Promote Domestic Demand

Finance departments (bureaus) of the provinces, autonomous regions, municipalities directly under the Central Government, and planned separate municipalities; the Finance Bureau of the Xinjiang Production and Construction Corps; the Shanghai headquarters of the People's Bank of China; branches of the provinces, autonomous regions, municipalities directly under the Central Government and planned separate cities; financial supervisory authorities; and relevant financial institutions:

In order to implement the decisions and arrangements of the Party Central Committee and the State Council on expanding domestic demand, stimulate private investment, promote consumer consumption, and better play the role of fiscal and financial coordination in promoting domestic demand, the relevant matters are hereby notified as follows:

I. Expanding the scope of interest rates

New working capital loans issued by eligible micro, small and medium-sized private enterprises are included in the scope of support for the micro, small and medium-sized enterprise loan interest rate discount policy, and the central financial administration provides interest rate discount support of 1 percentage point annualized based on the principal amount of working capital loans for a period of not more than 2 years.

New credit card installment services, such as special credit card instalments, consumer installments, and advance cash installments, are included in the scope of financial interest discount policy support for personal consumption loans. The interest rate discount ratio is 1 percentage point per annum.

II. Increase the number of management agencies

Expand the scope of loan interest rate discount policies for micro, small and medium-sized enterprises and loan interest rate discount policy management institutions for service industry operators to 21 national banks, urban commercial banks with a financial supervision rating of 3A or above, rural cooperative financial institutions, private banks, and foreign banks.

3. Appropriately increase the quota

The maximum loan size for which a single household can enjoy interest rate discounts on micro, small and medium-sized enterprise loans at a single management agency has been raised from 50 million yuan to 75 million yuan per year.

The maximum loan size that a single household can enjoy at a single management agency's loan interest rate discount from service industry operators has been raised from 10 million yuan to 20 million yuan per year.

The maximum cumulative interest rate discount limit for personal consumption loans and credit card installment services that each borrower can enjoy at a single management institution has been raised from 3,000 yuan per year to 5,000 yuan per year.

IV. Other matters

This notice is effective as of August 1, 2026. Other outstanding matters are in accordance with the “Notice of the Ministry of Finance and the People's Bank of China Financial Supervisory Authority on Matters Relating to Optimizing the Implementation of Financial Interest Discount Policies for Personal Consumption Loans” (Finance (2026) No. 1), the “Notice of the Ministry of Finance, the Ministry of Finance, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the People's Bank of China Financial Supervisory Administration on Implementing the Loan Interest Rate Discount Policy for Service Industry Operators” (Finance (2026) No. 5), etc. Enforcement of relevant regulations.

Ministry of Finance, People's Bank of China Financial Supervisory Authority

August 17, 2026

This article was selected from the “Ministry of Finance” official website, Zhitong Finance Editor: Chen Siyu.