China extends loan help for coronavirus-hit small businesses in bid to maintain economic recovery
- Small businesses will be allowed to further postpone their principal and interest repayments on inclusive loans past the previous deadline of the end of March
- China’s State Council also extended the inclusive credit loan support programme from the end of 2020
China will extend two credit policy tools for its smallest businesses into next year, as it tries to consolidate its economic recovery and counter external changes.
Small businesses will be allowed to further postpone their principal and interest repayments on inclusive loans past the previous deadline of the end of March, the State Council said in a statement summarising its executive meeting on Monday.
Inclusive loans provide financial support for disadvantaged and low-income segments of society that may lack the financial history to be eligible for traditional loans.
While the exact details must be negotiated between banks and individual borrowers, the government will provide an incentive equivalent to 1 per cent of the principal for customers with a deferred repayment period of no less than six months.