Personal consumer loan interest subsidy "extended and expanded" for a full month, with some banks increasing their Spring Festival offerings compared to the previous year

China Securities Journal, February 25 (Reporter Zou Juntao)
Before this year’s Spring Festival, the policy of interest subsidies for personal consumer loans was officially extended and expanded. It has been a month since the new policy was implemented. How effective has the policy been so far?

Several banking industry insiders told China Securities Journal that since the beginning of this year, multiple departments have introduced policies to promote consumption. Coupled with fiscal support for loan interest subsidies and an extended Spring Festival holiday, the related credit issuance is expected to show an optimistic trend. Some banks revealed that this year’s Spring Festival loan issuance has increased compared to last year.

However, most banks told China Securities Journal that the relevant data has not yet been compiled, so they cannot provide a definitive trend at this time. “We probably need to wait until after the Lantern Festival on the 15th of the lunar month for specific data feedback.”

Some banks see year-on-year increases in Spring Festival credit issuance

Before this year’s Spring Festival (January 20), the Ministry of Finance, the People’s Bank of China, and the Financial Regulatory Administration jointly issued the “Notice on Optimizing the Implementation of Personal Consumption Loan Fiscal Subsidy Policy,” extending the fiscal subsidy policy for personal consumption loans until the end of 2026. The policy also expanded support scope, broadened subsidy areas, increased subsidy standards, and added implementing agencies.

China Securities Journal learned that before the Spring Festival, many banks had optimized their subsidy implementation plans according to the latest policy requirements, including incorporating credit card installment business into the subsidy scope and removing restrictions on certain consumption subsidy scenarios.

Additionally, on February 2, the Ministry of Commerce and eight other agencies jointly issued the “2026 ‘LeGou New Year’ Spring Festival Special Activity Plan,” which clearly states “Increase financial support. Encourage financial institutions to cooperate with key merchants, plan exclusive Spring Festival activities, and launch consumption red envelopes, instant discounts, and other promotions to expand coverage.”

As the Spring Festival holiday ended, how did banks’ credit issuance perform? On the afternoon of February 24, online bank Bank of Commerce provided data to China Securities Journal showing that during the Spring Festival, driven by returning travelers and increased demand for stocking and employment, the bank’s merchant operational loans increased by 28.1% year-on-year;

In addition, affected by the Winter Olympics, the turnover of ski resort merchants nationwide increased by 55.9%, leading to increased demand for venue renovations and equipment upgrades, which in turn boosted related loan amounts by 50.6%.

Apart from Bank of Commerce, a person from a joint-stock bank’s Shenzhen branch also told reporters that, based on their internal statistics, this year’s Spring Festival credit issuance “is more optimistic compared to previous years.”

The person further stated that since the fiscal subsidy policy was implemented, the bank has received applications from relevant clients, which are currently under review. If approved, each client can enjoy a subsidy of 10,000 yuan. This indicates that the loan interest subsidy policy launched before the New Year is already taking effect.

Industry expects overall issuance to be optimistic, but awaits specific data

Other bank insiders told China Securities Journal that supported by multiple favorable policies, the related credit issuance since the Spring Festival is expected to be optimistic.

“Multiple departments have introduced policies to promote consumption, along with the extension and postponement of the fiscal subsidy for loans and the extended holiday, which will lead to a concentrated release of credit.” a relevant person from a city commercial bank in Northwest China analyzed. They expect credit issuance since the Spring Festival to be somewhat optimistic. However, since their relevant data has not yet been compiled, they cannot draw firm conclusions.

Additionally, many other banks and consumer finance institutions also told China Securities Journal that it will take some time before relevant results and data are available.

Ping An Bank and Ant Consumer Finance told China Securities Journal that they expect to see some data on credit issuance results “after the Lantern Festival, in two or three days,” when certain trends may become visible. Both institutions have recently launched special marketing initiatives related to the Spring Festival holiday and the loan interest subsidy policy.

Before the Spring Festival, the People’s Bank of China released financial data for January, showing that supported by government bonds and corporate bonds, social financing increased significantly in 2026, achieving a “good start”; however, overall credit issuance was weak, with January new RMB loans falling short of last year’s levels. RuiDa Futures pointed out that this year’s “good start” is not very strong, with a divided credit structure and weak growth in medium- and long-term loans. However, from a departmental perspective, household credit showed a slight warming trend.

(Edited by Qian Xiaorui)