What operations are required to apply for consumer loan interest subsidies? What conditions must be met? The Ministry of Finance responds in an article

On Tuesday, the Ministry of Finance released the "Implementation Plan for Fiscal Subsidies on Personal Consumption Loans" and the "Implementation Plan for Loan Subsidies for Service Industry Operating Entities," and answered questions from reporters. The following are the key points from the reporters' questions: Background of the "Implementation Plan for Fiscal Subsidies on Personal Consumption Loans" In order to deeply implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, and in accordance with the spirit of the State Council's executive meeting on July 31, the Ministry of Finance, together with the People's Bank of China and the Financial Regulatory Administration, jointly issued the "Plan." By implementing the fiscal subsidy policy for personal consumption loans, it further strengthens the coordination between fiscal and financial policies, using "real money" to support resident consumption, reduce the cost of consumer credit, stimulate residents' consumption potential, and support the expansion of domestic demand. This policy forms a "combined punch" with previously issued policies such as the trade-in for consumer goods and the loan subsidy policy for service industry operating entities issued by the Ministry of Finance at the same time, working together from both the demand and supply sides to boost consumption and consolidate the positive trend of sustained economic development. Fiscal Subsidy Policy for Personal Consumption Loans Directly Benefits Individual Consumers Unlike previous subsidy policies that primarily supported the investment and supply sides, the newly introduced fiscal subsidy policy for personal consumption loans focuses on the demand side, directly benefiting individual consumers by reducing the cost of personal consumption loans. The subsidy funds are directly deducted by the relevant loan handling institutions when charging interest to borrowers, enhancing consumers' sense of happiness and gain. In terms of supported groups, it relies on the differentiated customer base of commercial banks, consumer finance companies, and others, widely covering various groups such as wage earners and flexible employment personnel, enhancing the inclusiveness of the policy. Fiscal Subsidy Policy for Personal Consumption Loans Precisely Supports Consumption The subsidy is limited to the portion of personal consumption loans that are actually used for consumption. The "Plan" clearly stipulates that the subsidy scope includes the portion of personal consumption loans issued by loan handling institutions that are actually used for consumption, including single transactions below 50,000 yuan and single transactions of 50,000 yuan or more in key consumption areas. No subsidy will be provided for portions of personal consumption loans that are not actually used for consumption. The Loan Subsidy Policy for Service Industry Operating Entities Aims to Provide More Low-Cost Financial Resource Support Service industry operating entities have expectations for reducing financing costs. Most service industry operating entities are small and medium-sized enterprises and individual businesses, connecting the livelihoods of practitioners with residents' lives. Sustainable operations are generally affected by factors such as the scale of credit support, financing costs, and cash flow stability. The Ministry of Finance leads the implementation of the loan subsidy policy for service industry operating entities, aiming to provide more low-cost financial resource support for a wide range of service industry operating entities through the leverage effect of "four taels moving a thousand pounds," helping to further unblock the "capillaries" of the real economy. The Loan Subsidy Policy for Service Industry Operating Entities Supports Eight Categories of Consumption Areas Service industry operating entities' loans in eight categories of consumption areas, including catering and accommodation, health, elderly care, childcare, housekeeping, cultural entertainment, tourism, and sports, can enjoy subsidy support. Relevant Officials from the Ministry of Finance Answer Questions from Reporters Regarding the "Implementation Plan for Fiscal Subsidies on Personal Consumption Loans" In order to implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council on vigorously boosting consumption and comprehensively expanding domestic demand, fully leverage the guiding role of fiscal policy, strengthen the coordination and linkage between finance and fiscal policies, reduce the cost of consumer credit for residents, better stimulate consumption potential, and enhance market vitality, the Ministry of Finance, together with the People's Bank of China and the Financial Regulatory Administration, jointly issued the "Implementation Plan for Fiscal Subsidies on Personal Consumption Loans" (Cai Jin [2025] No. 80, hereinafter referred to as the "Plan"). Recently, relevant officials from the Ministry of Finance answered reporters' questions regarding the "Plan." 1. Promoting consumption and expanding domestic demand are the "keywords" of this year's economic work. What is the background for the issuance of the "Plan" by the fiscal and financial departments? Answer: Consumption is a key link and important engine for national economic growth. Vigorously boosting consumption is not only an important measure to expand domestic demand and solidify the "ballast stone" for economic growth but also an important aspect of enhancing people's well-being and meeting the growing needs for a better life. Adhering to the people-centered development philosophy requires shifting the focus of economic policies more towards benefiting people's livelihoods and promoting consumption, using consumption to stimulate and smooth economic circulation, leading industrial upgrades through consumption upgrades, and creating new economic growth points while ensuring and improving people's livelihoods, thus forming a virtuous cycle of economic development and improvement of living standards. The Central Committee of the Communist Party of China and the State Council attach great importance to boosting consumption. The Central Economic Work Conference in 2024 and the "Government Work Report" in 2025 both clearly proposed vigorously boosting consumption and improving investment efficiency, comprehensively expanding domestic demand. In March 2025, the General Office of the Central Committee and the General Office of the State Council issued the "Special Action Plan for Boosting Consumption," requiring the leveraging of fiscal policy to guide and drive efforts, providing fiscal subsidies for eligible personal consumption loans in 2025. To deeply implement the decisions and deployments of the Central Committee and the State Council, and in accordance with the spirit of the State Council's executive meeting on July 31, the Ministry of Finance, together with the People's Bank of China and the Financial Regulatory Administration, jointly issued the "Plan." By implementing the fiscal subsidy policy for personal consumption loans, it further strengthens the coordination and linkage between fiscal and financial policies, supports residents' consumption with "real money," reduces the cost of consumer credit for residents, stimulates residents' consumption potential, and supports the expansion of domestic demand. This policy, along with previously issued policies such as the trade-in for consumer goods and the loan subsidy policy for service industry operators issued by the Ministry of Finance at the same time, forms a "combined punch," working collaboratively from both the demand and supply sides to boost consumption and consolidate the trend of sustained economic improvement. 2. The personal consumption loan fiscal subsidy policy issued this time is the first implementation at the central level. What are the prominent features in the policy design? Answer: First, it directly benefits individual consumers. Unlike previous subsidy policies that focused on supporting the investment and supply sides, the personal consumption loan fiscal subsidy policy issued this time works from the demand side, directly benefiting individual consumers by reducing the cost of personal consumption loans. The subsidy funds are directly deducted by the relevant loan handling institutions when collecting interest from borrowers, enhancing consumers' sense of happiness and gain. In terms of supported groups, it relies on the differentiated customer base of commercial banks, consumer finance companies, and others, widely covering various groups such as wage earners and flexible employment personnel, thereby enhancing the inclusiveness of the policy Second, it is close to the actual consumption needs of residents. The personal consumption loan interest subsidy policy introduced this time supports the portion of personal consumption loans actually used for consumption by residents during the policy implementation period. It broadly covers various daily life consumption categories such as "clothing, food, housing, and transportation," as well as key areas of consumption closely related to residents' lives, including household cars, elderly care, childbirth, education and training, cultural tourism, home decoration, electronic products, and health care, which require relatively high capital investment. This is conducive to meeting the diversified and multi-level consumption needs of the people, better supporting them in enjoying more convenient, rich, and high-quality goods and services. Third, it adheres to market-oriented and rule-of-law operations. The "Plan" clearly requires loan handling institutions to conduct credit review and post-loan management according to market-oriented and rule-of-law principles while supporting the boost and expansion of consumption. It mandates the implementation of consumption loan interest rate policies and strict adherence to relevant regulations on the supervision and management of personal consumption loans, prohibiting the inducement of residents to borrow under the guise of policy introduction; it requires reasonable setting of consumption loan limits, terms, and interest rates, proper identification of borrowers' identities and consumption information, effectively strengthening the control of credit fund usage and risk management, and preventing the diversion of funds to non-consumption areas or the extraction of interest subsidy funds. Fourth, it emphasizes strengthening departmental collaboration. To promote the efficient and standardized implementation of the policy, the "Plan" implements full-process management of personal consumption loan interest subsidies, clearly defining the responsibilities of the Ministry of Finance, the People's Bank of China, the Financial Regulatory Administration, as well as local regulatory bureaus and financial departments. It specifies the work processes for applying, reviewing, and disbursing interest subsidy funds, incorporating the policy implementation status of loan handling institutions into the daily supervision of financial regulatory departments to ensure the effectiveness of policy execution. Third, what are the main contents of this personal consumption loan interest subsidy policy? Answer: First, regarding the supported objects, it includes the portion of personal consumption loans issued by loan handling institutions that residents actually use for consumption, covering single transactions below 50,000 yuan, as well as key area consumption such as household cars, elderly care, childbirth, education and training, cultural tourism, home decoration, electronic products, and health care for single transactions of 50,000 yuan and above. This essentially covers various daily life consumption of ordinary residents and relatively large expenditure in key areas. For key area consumption above 50,000 yuan, the interest subsidy is capped at a consumption limit of 50,000 yuan. Second, regarding the interest subsidy rate, the interest subsidy rate for personal consumption loans is set at an annualized rate of 1%, which is roughly one-third of the current personal consumption loan interest rates of commercial banks. The basis for calculating the interest subsidy is the total amount of eligible consumption paid by borrowers using personal consumption loans during the policy implementation period. Third, regarding loan handling institutions, the "Plan" specifies that the loan handling institutions include six large state-owned commercial banks that are national or cross-regional, twelve national joint-stock commercial banks, and five relatively large consumer finance companies, among other personal consumption loan issuing institutions. At the same time, to expand the policy coverage, local financial departments are encouraged to provide financial interest subsidies to other financial institutions engaged in personal consumption loan business based on actual conditions Fourth, regarding the interest subsidy process, the central government allocates interest subsidy funds to provincial finance departments in advance based on the needs of loan handling institutions at a certain ratio; provincial finance departments review and allocate quarterly interest subsidy funds based on applications from loan handling institutions and summaries from local financial regulatory bureaus. After the policy execution period ends, the finance and financial regulatory departments will handle the settlement of interest subsidy funds according to procedures. Fifth, regarding the policy duration, the implementation period of the policy is one year, specifically from September 1, 2025, to August 31, 2026. During this period, eligible personal consumer loans can enjoy this interest subsidy policy. After the policy expires, the duration may be extended and the support scope expanded based on the research of the implementation effects. Four, what operations are required for borrowers to apply for personal consumer loan interest subsidies? Answer: To minimize the operational burden on borrowers, the calculation, application, allocation, and settlement of personal consumer loan interest subsidy funds are mainly concentrated in loan handling institutions and government departments, aiming for convenient processes, precise management, and efficient execution. While ensuring the compliant use of interest subsidy funds, the operations for borrowers are simplified as much as possible. From the borrower's perspective, the overall process still follows the general loan process at the handling financial institution. At the same time, to effectively identify consumer transaction information that meets the subsidy conditions, borrowers need to authorize the handling financial institution to obtain transaction information from the loan disbursement account or designated account for the purpose of conducting interest subsidy fund reviews. The authorization of relevant transaction information follows the principle of voluntary consent; if the borrower does not agree to authorize the handling financial institution to query relevant transaction information, they will not enjoy this interest subsidy policy, but this does not affect the borrower's normal application, use of personal consumer loans, and full repayment of the principal and interest of the loan. Five, how does the personal consumer loan interest subsidy policy accurately support consumption? Answer: First, it limits the subsidy recipients to the portion of personal consumer loans actually used for consumption. The "Plan" clearly stipulates that the subsidy scope includes the portion of personal consumer loans issued by loan handling institutions that is actually used for consumption by residents, including consumption below 50,000 yuan per transaction, as well as consumption in key areas for transactions of 50,000 yuan and above. No subsidy will be granted for portions of personal consumer loans that are not actually used for consumption. Second, it clarifies the responsibilities of loan handling institutions in identifying borrowers' consumption information. According to the "Plan," while charging interest to borrowers, loan handling institutions must review the transaction information of relevant accounts to identify the portion that constitutes consumption. For transactions of 50,000 yuan and above, loan handling institutions must also identify the field of consumption. Based on the identification and review of relevant consumption information, loan handling institutions will summarize and calculate the amount of financial interest subsidy, directly deducting the subsidy funds that should be borne by the finance department when charging interest to borrowers, and submit the interest subsidy fund allocation application to the local provincial finance department and financial regulatory bureau as required. Third, it establishes a comprehensive review mechanism for the allocation of interest subsidy funds. According to the "Plan," the allocation of personal consumer loan interest subsidy funds must go through three levels of review: internal review by the loan handling institution, summary by various financial regulatory bureaus, and confirmation by local finance departments. After the policy execution period ends, the Ministry of Finance will also organize relevant regulatory bureaus of the Ministry of Finance and relevant financial regulatory bureaus to conduct inspections on the applications, reviews, and settlements of interest subsidy funds by loan handling institutions, and any issues found will be dealt with seriously according to laws and regulations to ensure that the subsidy funds are truly used to support consumption 6. How to effectively implement the "Plan"? Answer: To promote the orderly implementation of the "Plan" and effectively achieve the policy goals of boosting consumption and benefiting people's livelihoods, the Ministry of Finance will actively work with relevant departments to jointly carry out the following tasks: First, strengthen organizational coordination. Establish a special working mechanism between central and local finance, as well as with relevant financial management departments, to collaboratively handle the review and disbursement of interest subsidy funds, policy execution supervision and inspection, and after the policy execution period ends, work with financial regulatory departments to conduct a special verification of policy implementation. Second, urge local finance departments and financial management departments to effectively organize and implement the plan. Guide provincial finance departments and financial regulatory departments to strictly review interest subsidy funds and conduct daily supervision according to policy requirements, improving the precision and compliance of policy execution. Third, ensure that loan handling institutions take responsibility for the calculation and review of interest subsidy fund applications. Guide loan handling institutions to implement personal consumption loan interest subsidy policies, strictly manage credit and risk prevention, and carry out borrower consumption information identification, interest subsidy fund calculation and review, and application work as required. Fourth, continuously track policy implementation. The Ministry of Finance will work with the People's Bank of China, the Financial Regulatory Administration, and other relevant departments to closely monitor the implementation of the policy and the disbursement and use of interest subsidy funds. For issues raised by various parties during policy execution, timely research and clarification will be conducted; for any illegal or irregular activities discovered, relevant departments will pursue corresponding responsibilities in accordance with the law and regulations. A relevant official from the Ministry of Finance answers reporters' questions about the "Implementation Plan for Interest Subsidies on Loans to Service Industry Operating Entities" August 12, 2025 Source: Financial Department To implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council on vigorously boosting consumption and expanding domestic demand in all aspects, and to fully leverage the guiding role of fiscal policy in reducing the financing costs of service industry operating entities and stimulating the vitality of the consumption market, the Ministry of Finance, together with the Ministry of Civil Affairs, the Ministry of Human Resources and Social Security, the Ministry of Commerce, the Ministry of Culture and Tourism, the National Health Commission, the People's Bank of China, the Financial Regulatory Administration, and the General Administration of Sports, jointly issued the "Implementation Plan for Interest Subsidies on Loans to Service Industry Operating Entities" (Cai Jin [2025] No. 81, referred to as the "Plan"). Recently, a relevant official from the Ministry of Finance answered reporters' questions regarding the "Plan." 1. This year, the state has continuously introduced policies and measures to stabilize employment, stabilize the economy, and promote consumption. What is the main background for the joint issuance of the "Plan" by nine departments? The Central Economic Work Conference in 2024 and the "Government Work Report" in 2025 both proposed vigorously boosting consumption and improving investment efficiency, expanding domestic demand in all aspects. In March 2025, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council publicly released the "Special Action Plan for Boosting Consumption," which required "leveraging the guiding role of fiscal policy to provide financial interest subsidies for eligible personal consumption loans and loans to service industry operating entities in the consumption sector in 2025." To implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, the Ministry of Finance took the lead in formulating the interest subsidy policies for loans to service industry operating entities and personal consumption loans, which were approved by the 65th executive meeting of the State Council on July 31. As one of the two policies to boost consumption, the introduction of the interest subsidy policy for loans to service industry operating entities is mainly based on the following considerations: First, boosting consumption requires coordinated efforts on both the supply and demand sides. With the implementation of a package of incremental policies deployed by the Central Committee last year and various measures introduced this year to stabilize employment and the economy, domestic demand has expanded comprehensively, and consumption in key areas has continued to rise. However, expanding domestic demand still faces some constraints, and the imbalance in supply and demand has become prominent, putting certain pressure on the recovery of consumption. It is necessary to vigorously boost consumption by increasing income and reducing burdens to enhance consumption capacity and willingness, and to create effective demand through high-quality supply, requiring coordinated efforts from both the demand and supply sides. As providers of consumption services and scenarios, service industry operators need increased support for production and expanded reproduction to create conditions for providing high-quality consumption services. Second, the public has demands for the quality and upgrading of service consumption. Service consumption is broad and interconnected, directly related to enhancing people's well-being and continuously meeting their aspirations for a better life. In recent years, the proportion of service consumption among Chinese residents has continued to rise, with per capita service consumption expenditure reaching 46.1% in 2024, accelerating the shift in consumption structure from goods consumption to service consumption. The targeted support measures introduced this time will promote the optimization and expansion of service consumption supply, better matching the growing demand for high-quality service consumption among the public. Third, service industry operators have expectations for reducing financing costs. Most service industry operators are small and medium-sized enterprises and individual businesses, connecting the livelihoods of practitioners with residents' lives. Sustainable operations are generally affected by factors such as the scale of credit support, financing costs, and cash flow stability. The Ministry of Finance is leading the implementation of a loan interest subsidy policy for service industry operators, aiming to provide more low-cost financial resources to a wide range of service industry operators through the leverage effect of "a small effort yielding great results," helping to further unblock the "capillaries" of the real economy. Second, what work requirements does the "Plan," as the first central-level loan interest subsidy policy focusing on the consumption field and targeting service industry operators, propose? The fiscal interest subsidy policy provides "real financial support" to loan subjects, which is conducive to fully leveraging the guiding role of fiscal funds. The introduction of this "Plan" focuses on the consumption field closely related to people's daily lives, with precise efforts and targeted measures. The work requirements can be summarized as "four persistences": First, persist in government guidance and provincial coordination. Local governments, especially provincial governments, should play a coordinating role based on the consumption characteristics of different regions and groups, establishing and improving work mechanisms, organizing departments such as finance, civil affairs, human resources and social security, commerce, culture and tourism, health, sports, and financial management to implement a "self-audit and self-subsidy" model where provincial industry management departments strengthen review and supervision, and provincial finance departments ensure subsidy needs, forming a collaborative effort to improve work efficiency. Second, persist in market operation and independent loan review. Promote a better combination of proactive government and effective market, allowing banks to independently review, credit, and lend to eligible operating subjects according to market-oriented and rule-of-law principles, ensuring that credit resources effectively support service industry-related activities and help enhance service supply capacity Third, adhere to precise policies and efficient operations. Adapt to the characteristics of small-scale, numerous service industry operators with frequent capital transactions by appropriately simplifying the interest subsidy process. Loans will be approved and issued by the handling banks, and the financial department will allocate interest subsidy funds, strengthening the supervisory and verification roles of relevant departments to accurately guide financial institutions to increase credit investment in the consumer service sector. Fourth, adhere to strict supervision and risk prevention. Promote each participant to take responsibility and strengthen management to effectively prevent risks. Provincial governments should enhance coordination, organize industry management departments to strengthen industry supervision, and review loans and interest subsidies; handling banks should strengthen loan management and strictly control compliance risks before and after loans; financial regulatory departments should enhance supervision and urge handling banks to strictly control the flow of funds; financial departments should track and randomly check the use of interest subsidy funds, promoting standardized management and use of financial interest subsidy funds. Three, what conditions must service industry operators meet to enjoy the interest subsidy policy? The "Plan" provides a fiscal interest subsidy support of 1 percentage point per year for eligible service industry operators, with a subsidy period not exceeding 1 year, and a maximum subsidy amount of 10,000 yuan per entity. The specific conditions are as follows: First, support scope. Service industry operators in eight consumer sectors, including catering and accommodation, health, elderly care, childcare, housekeeping, cultural entertainment, tourism, and sports, can enjoy interest subsidy support for loans. Second, term conditions. Loans must be contracted between the public release date of the "Special Action Plan to Boost Consumption" on March 16, 2025, and December 31, 2025, and the relevant loan funds must be disbursed to the operators, with interest subsidies provided based on the loan principal. Third, fund usage. Loans to service industry operators must be used in compliance to improve consumer infrastructure and enhance service supply capacity. Fourth, handling banks. Relevant handling banks include 21 national banks, including the National Development Bank, China Export-Import Bank, Agricultural Development Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China Postal Savings Bank, CITIC Bank, China Everbright Bank, Huaxia Bank, Minsheng Bank, China Merchants Bank, Industrial Bank, Guangfa Bank, Ping An Bank, SPD Bank, Hengfeng Bank, CZBANK, and CBHB. Fifth, other conditions. The same loan cannot enjoy other central financial interest subsidy policies repeatedly; if it has already enjoyed local financial interest subsidy policies, this interest subsidy cannot exceed the actual interest rate level after deducting existing subsidies. Four, we note that the "Plan" has detailed regulations on various aspects of interest subsidies from the perspective of full lifecycle management. Can you introduce the specific workflow to us? In recent years, the Ministry of Finance, in conjunction with relevant parties, has implemented policies such as interest subsidies for loans to stabilize production and supply during the pandemic, interest subsidies for equipment updates in certain fields, and interest subsidies for large-scale equipment updates, forming a complete set of loan interest subsidy policy management mechanisms. This interest subsidy policy continues to use relevant mature working mechanisms, and the workflow is mainly divided into six steps: First, loan approval and issuance. Eligible service industry operators can apply for loans from the relevant handling banks in their location and provide relevant supporting materials as required. Handling banks will approve loan applications based on market-oriented and legal principles, independently decide on loan issuance conditions, and disburse funds in a timely manner Second, regular review of loans. The provincial branch of the handling bank summarizes the loan issuance situation that meets the interest subsidy conditions on a monthly basis and regularly reports it to the provincial industry management department for review. Third, application for interest subsidy funds. The provincial branch of the handling bank, in conjunction with the review and inspection situation of relevant departments, timely submits an application for interest subsidy fund requirements to the provincial finance department. Fourth, settlement of interest subsidy funds. After receiving the interest subsidy fund application from the handling bank, the provincial finance department promptly compares it with the review situation of the industry management department and submits an interest subsidy settlement application to the Ministry of Finance. The Ministry of Finance settles and allocates the interest subsidy funds borne by the central government with each provincial finance department. Fifth, allocation of interest subsidy funds. The provincial finance department promptly allocates the financial interest subsidy funds to the provincial branch of the handling bank. The handling bank returns the corresponding interest subsidy funds to the operating entity in a lump sum for the interest already paid; for the unpaid interest, the corresponding interest subsidy funds are directly deducted when collecting interest from the operating entity on schedule. Sixth, clearing of interest subsidy funds. After the policy expires, the handling bank timely submits an application for clearing interest subsidy funds to the provincial finance department. After summarizing and reviewing, the provincial finance department submits a clearing report for interest subsidy funds to the Ministry of Finance. The Ministry of Finance clears the interest subsidy funds with each provincial finance department. Five, what requirements does the "Plan" propose for effectively implementing the policy? The "Plan" closely aligns with the characteristics of service industry operating entities in the consumption field, fully considers the convenience of operation for operating entities, the coordination of responsibilities among all parties, and the compliance of interest subsidy fund usage, striving for convenient processes, precise management, and efficient execution to support consumption recovery more vigorously. First, simplify processes and improve efficiency. In the interest subsidy application stage, service industry operating entities only need to apply for loans at the handling bank according to the general loan process. For interest subsidy funds, the handling bank submits a one-time interest subsidy application to the finance department after the policy expires, allowing operating entities to enjoy preferential interest rates without application. In the qualification review stage, the handling bank autonomously determines the eligible operating entities based on the national economic industry classification, ensuring that the relevant standards meet the requirements of national unified industry classification while also adapting to the internal loan management needs of the bank, facilitating precise and efficient identification of supported entities. In the interest subsidy allocation stage, to meet the interest subsidy fund needs of various regions, while clarifying the principle of unified settlement after expiration, a certain degree of flexibility is retained. If there is strong credit demand, increased interest subsidy demand, and accelerated policy implementation in actual execution, the Ministry of Finance may organize provincial finance departments to carry out settlement work in advance or in phases based on the policy implementation situation. Second, strengthen responsibilities and form a synergy. The handling bank assumes the primary responsibility for loan review, reasonably matches preferential credit limits, and strengthens post-loan management. Relevant industry management departments assume industry supervision responsibilities and strictly review and approve. Financial regulatory departments assume financial regulatory responsibilities, urging handling banks to review the use of funds and track the actual use of loans to ensure compliance and effective use of loan funds. Finance departments assume management responsibilities for interest subsidy funds, dynamically grasping the progress of loan issuance and the demand for interest subsidy funds, reasonably determining the frequency of interest subsidy fund allocation and settlement cycles. The provincial branch of the People's Bank of China shares relevant policy implementation situations with provincial finance departments to strengthen the coordination and linkage of monetary and fiscal policies Third, strengthen monitoring to ensure effectiveness. It is required that operating entities use loan funds to enhance service supply capacity and improve consumer infrastructure, and it is strictly prohibited to use them for real estate development or investment, wealth management, and other arbitrage activities. Relevant departments should strengthen supervision, and if violations of policy regulations regarding the use of loan funds or the application for interest subsidy funds are discovered, they should promptly recover the relevant credit funds and financial interest subsidy funds, and impose penalties on the operating entities and the banks involved in accordance with laws and regulations, ensuring that interest subsidy funds are used to support compliant business activities and truly achieve policy effectiveness. This article is compiled from the Ministry of Finance's "A responsible person from the Ministry of Finance answers reporters' questions on the 'Implementation Plan for the Fiscal Interest Subsidy Policy for Personal Consumption Loans'" and "A responsible person from the Ministry of Finance answers reporters' questions on the 'Implementation Plan for the Interest Subsidy Policy for Service Industry Operating Entities'"