Fiscal Subsidies
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Interest Subsidies on Purchases Under 50,000 Yuan: Will Consumers Increase Spending, e.g., on Cars?
Beijing is launching a program offering interest subsidies on individual consumer loans from September 2025 to August 2026. The subsidies, capped at ¥50,000 per transaction, target purchases in sectors like automobiles, elder care, education, tourism, home improvement, electronics, and healthcare. Borrowers can receive an annual 1% interest subsidy, up to 50% of the loan’s interest rate. Individuals are eligible for a cumulative subsidy of ¥3,000 per lending institution. The initiative aims to boost domestic consumption, sparking debate about consumer financing choices.
