Core Viewpoint - The new regulation by the National Financial Regulatory Administration and the People's Bank of China aims to enhance transparency in personal loan costs, requiring lenders to disclose comprehensive financing costs to borrowers starting from August 1, 2026 [1][2]. Summary by Sections Personal Loan Cost Transparency - The regulation mandates that all costs associated with personal loans, including interest, installment fees, credit enhancement service fees, overdue penalties, and misuse penalties, must be clearly disclosed to borrowers before loan agreements are signed [1][2]. Disclosure Requirements - Lenders must itemize specific cost projects, collection methods, standards (annualized), and the entities collecting these fees. They are also prohibited from charging any undisclosed fees beyond those explicitly stated [2][3]. Implementation and Compliance - The regulation applies to various lending institutions, including banks, consumer finance companies, auto finance companies, trust companies, and micro-lending companies. A five-month preparation period is provided for these institutions to adjust their processes and systems before the regulation takes effect [3][4]. Regulatory Oversight - Regulatory bodies will enforce strict supervision and management of compliance with the new disclosure requirements, with measures in place for institutions that fail to comply [4].