AGRICULTURAL BANK OF CHINA(SH:601288) Jin Rong Shi Bao·2025-08-20 09:47Core Viewpoint - The introduction of the personal consumption loan interest subsidy policy is expected to stimulate consumer spending and reduce borrowing costs for individuals, with banks rapidly implementing detailed plans to facilitate the policy's rollout [1][3]. Group 1: Policy Implementation - The Ministry of Finance, the People's Bank of China, and the financial regulatory authority have announced the implementation plan for the personal consumption loan interest subsidy policy, effective from September 1 [1]. - Major banks, including state-owned and joint-stock banks, are responding quickly to the policy, with many already disclosing detailed business guidelines [1][3]. Group 2: Subsidy Details - The interest subsidy rate for personal consumption loans is set at an annualized 1%, with a maximum limit of 50% of the loan contract interest rate [1]. - Each borrower can receive a total subsidy of up to 3,000 yuan, corresponding to a cumulative consumption amount of 300,000 yuan, with a single loan limit of 1,000 yuan for amounts under 50,000 yuan [1][2]. Group 3: Borrowing Process - To apply for the subsidy, customers must sign a supplementary agreement and authorize the bank to access their loan account information to verify eligible consumption transactions [2]. - Banks like Industrial and Commercial Bank of China are optimizing the subsidy application process and refining their loan products and terms [3]. Group 4: Impact on Borrowing Costs - The subsidy is expected to significantly lower borrowing costs, with the effective interest rate for high-quality customers potentially dropping to around 2% [3]. - For example, a consumer borrowing 200,000 yuan at a 3% interest rate would see their annual interest payment decrease from 6,000 yuan to 4,000 yuan after applying the subsidy [4]. Group 5: Compliance and Regulations - The policy specifies that only the portion of personal consumption loans actually used for consumption will be eligible for the subsidy, and misuse of the subsidy will lead to strict penalties [4]. - Banks are prohibited from allowing fraudulent activities related to the subsidy, and violations will result in negative credit records for borrowers [4][5].