China’s Ministry of Finance published detailed rules for a nationwide loan-interest subsidy designed to lower borrowing costs for consumers and service-sector companies, part of a broader push to revive domestic demand. The plan, issued with eight other agencies, will grant an annual interest subsidy of one percentage point on qualifying loans. Personal consumption loans taken between 1 September 2025 and 31 August 2026 can receive subsidies of up to CNY3,000 (about USD420) per borrower. Eligible spending categories include autos, childcare, elderly care, education, tourism, home furnishings, electronics and healthcare. Businesses in eight consumer-service industries—such as catering, travel and elderly support—also qualify for the one-year subsidy, which will be calculated on the loan principal. Beijing will shoulder 90 percent of the cost, with provincial governments covering the rest. Major state-owned banks and other designated lenders have been instructed to expedite approvals, while the People’s Bank of China said it would steer additional credit to the targeted sectors. Officials said the measure could unlock “several trillion yuan” in new lending and help stabilise employment. The stimulus arrives as credit growth shows signs of strain. New yuan loans totalled CNY12.87 trillion in the first seven months of the year, missing forecasts, and the July tally turned negative for the first time since 2005. Aggregate financing also came in below expectations, even as M2 money supply growth accelerated to 8.8 percent. Policymakers hope the subsidy will rekindle borrowing appetite and support consumption amid headwinds from weak confidence and higher U.S. tariffs.