Recently, the highly anticipated personal consumption loan interest subsidy policy and service industry operating entity loan interest subsidy policy have been officially implemented. On August 13, the relevant heads of the Ministry of Finance, the Ministry of Commerce, the People's Bank of China and the State Administration of Financial Supervision explained in detail two highlights of loan discount interest at the press conference held by the State Council Information Office: leveraging the flow of funds to the consumer sector through fiscal and financial coordination; The process design emphasizes simplification. Individuals can enjoy a maximum subsidy of 3000 yuan at the same lending institution, while enterprises can calculate interest subsidies based on the loan amount. Single households can enjoy a maximum subsidy of 10000 yuan. It is reported that unlike previous subsidy policies that mainly support the investment and supply sides, this time the two policies, through the deep coordination of fiscal subsidies and financial support, simultaneously exert force from both the consumer demand of residents and the supply side of the service industry, injecting strong momentum into further activating the consumer market and expanding domestic demand, becoming an important measure for precise macroeconomic policy regulation. According to the relevant person in charge, a simple calculation shows that if a 1% discount rate is used, it means that 1 yuan of discount funds may drive 100 yuan of loan funds for residents' consumption or the supply of service industries in the consumer sector. In addition, the reporter noticed that after the policy was released, multiple financial institutions quickly responded. Banks such as Bank of China and Agricultural Bank of China have clearly stated that they will start relevant work from September 1st, and institutions such as Ant Consumer Finance and Zhaopin Consumer Finance have also expressed their willingness to promote policy implementation. In the opinion of industry experts, the next step for financial institutions is to strictly control risks and compliance, ensure the use of funds through payment tracking and invoice verification, control interest rates according to self-discipline agreements, and balance growth and asset quality. The targeted credit funds were precisely invested in Liao Min, vice minister of the Ministry of Finance in the consumption field. On August 12, the Ministry of Finance, together with the Ministry of Commerce, the People's Bank of China, the State Administration of Financial Supervision and other relevant departments, issued the Implementation Plan of the Financial Discount Policy for Personal Consumption Loans and the Implementation Plan of the Discount Policy for Service Industry Business Owners' Loans, to support consumption promotion and expand domestic demand through the linkage of finance and finance. In the past two years, the Ministry of Finance has continuously increased the coordination between finance and banking to amplify the multiplier effect of public funds and expand policy coverage. The individual consumption loan interest subsidy and service industry operating entity loan interest subsidy this time are one of the specific measures. Consumption is an important engine of economic growth and a key link in smoothing the domestic circulation. The Party Central Committee and the State Council attach great importance to boosting consumption and expanding domestic demand. In March 2025, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Special Action Plan for Boosting Consumption", proposing to provide loan interest subsidies for eligible personal consumption loans and service industry operating entities in the consumption field by 2025. The Central Political Bureau meeting held on July 30th once again emphasized the need to deepen the implementation of the special action to boost consumption and effectively unleash the potential of domestic demand. The Ministry of Finance has conscientiously implemented the decisions and arrangements of the Party Central Committee and the State Council, and, in conjunction with relevant departments, formulated two interest subsidy policies for personal consumption loans and service industry operating entity loans in the consumption field. The purpose is to further strengthen fiscal and financial coordination, leverage more credit funds to accurately invest in the consumption field, reduce credit costs for residents and operating entities, and promote smooth economic circulation by boosting consumption while ensuring and improving people's livelihoods. Che Shiyi, the head of the credit market department of the People's Bank of China, said at the press conference that the discount policy will enhance the consumption willingness of residents from the demand side and improve the supply ability of enterprises to provide high-quality services, which is consistent with the focus of financial support policies in the consumption field issued by the People's Bank of China earlier, and is conducive to the policy effect of "1+1gt; 2". Che Shiyi further explained that the interest subsidy policy directly reduces the financing costs for residents' consumption and business operations by subsidizing loan interest expenses, thereby alleviating financial burdens; The re lending policy links policy incentives with banks' credit allocation to the consumer sector. By providing low interest re loans to commercial banks through the central bank, it promotes banks to increase credit allocation to the consumer sector and benefits business entities. As the first interest subsidy measure launched by the central government for personal consumption loans, the demand can save about one-third of the interest, directly targeting the pain points of residents' consumption and stimulating consumption potential by reducing credit costs. Regarding the personal consumption loan subsidy policy, Liao Min introduced that the subsidy targets the portion of personal consumption loans actually used for consumption by residents through relevant loan agencies, including daily consumption of less than 50000 yuan per transaction, as well as consumption in key areas such as household cars, elderly care and childbirth, education and training, cultural tourism, home decoration, electronic products, and health and medical care with a single transaction of 50000 yuan or more. From the perspective of interest subsidy intensity, the policy sets a 1 percentage point interest subsidy ratio, which accounts for about one-third of the current personal consumption loan interest rate level of commercial banks, and can significantly reduce the borrowing pressure on residents. The policy implementation period is one year, covering both commodity consumption and service consumption, precisely in line with the upgrading trend of diversified and quality-oriented consumption among Chinese residents. Guo Wuping, Director of the Policy Research Department of the State Administration of Financial Regulation, stated that the personal consumption loan interest subsidy policy involves thousands of households and is related to the vital interests of the vast number of financial consumers. Regarding risk prevention and service optimization in policy implementation, Guo Wuping has put forward clear requirements: in terms of credit management, loan handling institutions should follow the principles of marketization and rule of law, carry out differentiated credit, reasonably set loan limits, terms and interest rates, improve contract terms, and strictly conduct credit evaluation and post loan management; In terms of usage control, institutions need to improve their information systems, accurately identify eligible consumption scenarios, and strictly prevent funds from being diverted to non consumption areas or embezzling interest subsidies; At the level of supervision and management, loan handling institutions should do a good job in calculating, reviewing, and applying for loan interest subsidy funds. The handling agency is responsible for the authenticity, compliance, and accuracy of the interest subsidy data and related materials. Each financial regulatory bureau will include the implementation of personal consumption loan interest subsidy policies in daily supervision, and cooperate with the financial department to timely verify the application, disbursement, and settlement of interest subsidy funds by loan handling agencies. Since the beginning of this year, multiple policies to boost consumption have been implemented one after another. In June of this year, the central bank took the lead in issuing the "Guiding Opinions on Financial Support to Boost and Expand Consumption", setting up 500 billion yuan of service consumption and pension refinancing loans to encourage and guide financial institutions to increase credit supply in the consumption sector. According to data from the central bank, as of the end of June, the balance of consumer loans for households nationwide, excluding personal housing loans, was 21.2 trillion yuan, and the balance of loans for key service consumption areas such as accommodation, catering, cultural and entertainment, education, and resident services was 2.8 trillion yuan. In addition, Che Shiyi introduced that the interest rate of consumer loans is independently determined by banks in accordance with market-oriented principles, and the subsidized portion is directly subsidized to the people by fiscal funds. While supporting and expanding consumption, it also takes into account the sustainability of financial support for the real economy. To minimize the operational burden on borrowers, the policy always follows the principle of simplification when designing the interest subsidy process. In terms of personal consumption loan interest subsidies, borrowers only need to add one operation when applying for personal consumption loans and signing relevant loan contracts, granting the loan handling agency relevant permissions to identify the transaction information of the loan disbursement account or designated account. For loans that have already been signed, the loan handling agency may obtain relevant authorization from the borrower through signing supplementary agreements or other means. After obtaining authorization, the loan handling institution will calculate the amount of financial interest subsidy according to the actual consumption situation and policy requirements. When collecting loan interest on a regular basis, the subsidy funds borne by the government will be directly deducted. Borrowers can know the specific situation of enjoying financial interest subsidy through SMS, mobile app, etc., without additional operation. For single transactions of less than 50000 yuan, interest subsidies will be calculated based on the actual amount. After multiple transactions are added together, the highest interest subsidy available at the same lending institution is 1000 yuan; For a single consumption of over 50000 yuan, the interest subsidy is calculated based on a maximum of 50000 yuan, or multiple transactions can be stacked together. After adding the interest subsidy for small consumption, the maximum interest subsidy available at the same lending institution is 3000 yuan. Yu Hong, Director of the Financial Department of the Ministry of Finance, gave an example that if a consumer uses a personal consumption loan and spends 200000 yuan on decoration, furniture, home appliances and other consumer goods during the policy implementation period, assuming that the annual interest rate of the consumption loan is 3%, without interest subsidies, he would have to pay a loan interest of 6000 yuan for the whole year. After enjoying a 1 percentage point interest subsidy on the personal consumption loan, the maximum interest expense can be reduced by 2000 yuan, which can result in a one-third interest subsidy. The policy of offering a maximum discount of 10000 yuan for a single household, in conjunction with the personal consumption loan discount policy, is launched for service industry operators in the consumer sector. It focuses on the supply side of consumer services and aims to improve service quality and supply capacity by supporting the development of operators. Liao Min introduced that from the perspective of consumption structure, China's current service consumption has great growth potential. In order to unleash this potential, higher quality supply is needed. Therefore, the Ministry of Finance has simultaneously implemented a subsidy policy for loans to service industry operators. The interest subsidy targets bank loans issued to service industry operators in the consumer sector, focusing on eight major consumer service areas including catering and accommodation, health, elderly care, childcare, home economics, cultural and entertainment, tourism, and sports. The interest subsidy ratio is 1 percentage point, which can be subsidized for 1 year. The maximum loan scale that service industry operators in the above fields can enjoy interest subsidy per household is 1 million yuan, and the maximum interest subsidy per household is 10000 yuan. Guo Wuping stated that offering subsidized loans to service industry operators can promote the improvement of consumer supply quality and efficiency. This policy and the personal consumption loan interest subsidy policy are aimed at both the supply and demand sides, working together and implementing precise policies. It is expected to promote a virtuous cycle in the consumption sector and enhance the vitality of the consumer market. Regarding the handling banks, Guo Wuping put forward four requirements: firstly, focus on eight consumer industries closely related to the daily lives of the people, increase credit investment efforts, and achieve "direct access to grassroots, fast and convenient, and appropriate interest rates" for credit funds. Secondly, the handling bank should follow the principles of marketization and rule of law, do a good job in approving loans from operating entities that meet the conditions for interest subsidies, adhere to strict review, accelerate loan disbursement, optimize operational processes, and meet the diversified financing needs of consumer supply entities. At the same time, the handling bank should fully cooperate with the finance department and industry regulatory authorities to do a good job in loan interest subsidy work, summarize the loan disbursement situation of service industry operating entities that meet the interest subsidy conditions on a monthly basis, and timely submit it to the provincial industry regulatory authorities for review. After the policy expires, it is necessary to submit an application for interest subsidy funds to the provincial finance department as required. After receiving the allocated interest subsidy funds, the loan handling bank should promptly carry out the work of interest subsidy return and interest deduction for the operating entity. Finally, the handling bank will be guided to strictly apply for subsidized funds in accordance with the review and inspection results of the industry management department, and dynamically track the flow of loans, strengthen the control of fund use, and ensure the compliance and effective use of funds. It is reported that after the expiration of the two policies mentioned above, relevant departments will conduct an effectiveness evaluation, study how to extend the policy period, expand the scope of support, or adjust the scope of loan handling institutions as appropriate, to ensure that the policies continue to be accurately implemented. As the "last mile" executor of policy implementation, the landing bank consumer finance company quickly followed up. On August 13th, Beijing Business Daily reporters noticed that several financial institutions have expressed their active efforts to promote the implementation of detailed rules. In terms of personal consumption loans, Bank of China, Agricultural Bank of China, and Construction Bank