Core Viewpoint - The Chinese government has introduced a subsidy program for personal consumption loans, effective from September 1, 2025, to August 31, 2026, providing a 1% annual interest subsidy for loans used for consumption purposes [5][9]. Group 1: Policy Implementation - The subsidy program is the first of its kind from the central government aimed at personal consumption loans, with a subsidy rate of 1%, which is approximately one-third of the current interest rates for personal consumption loans [5]. - The subsidy applies to loans used for genuine consumption, including daily expenses under 50,000 yuan and larger purchases such as home appliances, vehicles, and education [5][9]. - Each borrower can receive a maximum subsidy of 3,000 yuan from the government [5]. Group 2: Bank Preparedness - Multiple banks have prepared to implement the subsidy program, optimizing processes and ensuring that funds are directed towards consumer spending [4][8]. - Major commercial banks and consumer finance companies have completed system developments and are conducting final tests to launch the subsidy feature by September 1 [8]. - Banks are actively promoting the subsidy to consumers, collaborating with retailers to raise awareness [7][8]. Group 3: Consumer Experience - Banks will directly deduct the subsidy from the interest charged to eligible borrowers, enhancing customer satisfaction [6]. - Consumers can apply for loans and check their subsidy amounts through mobile banking apps [9]. - The program aims to simplify the loan application process and improve the overall customer experience [8][10].