The National Financial Regulatory Administration and the People's Bank of China issued the "Regulations on the Disclosure of Comprehensive Financing Costs for Personal Loan Business."

LightningPacketLoss · 2026-04-03T14:27:48+00:00

On March 15, the official website of the National Financial Regulatory Administration released a message that, in order to maintain the order of the personal loan market, protect the legitimate rights and interests of financial consumers, and improve the quality and efficiency of financial services, the Financial Regulatory Administration and the People's Bank of China jointly issued the "Regulations on the Clear Disclosure of the Comprehensive Financing Cost of Personal Loan Business" (hereinafter referred to as the "Regulations"), which will come into effect on August 1, 2026.The clear disclosure of the comprehensive financing cost of personal loan business is an important measure for the Financial Regulatory Administration and the People's Bank of China to conscientiously implement the decisions and deployments of the Party Central Committee and the State Council, to deeply understand the political and people-oriented nature of financial work, and to coordinate efforts to prevent risks, strengthen regulation, and promote high-quality development. It is also a powerful tool to strengthen the coordination between financial regulation and monetary policy, and to improve the quality and efficiency of financial services to the real economy. The Regulations aim to address issues of non-standard and non-transparent disclosure of interest and fee information in personal loan business, better safeguard the legitimate rights and interests of financial consumers, facilitate the smooth transmission of financial policies that benefit the people, and promote the development of

LightningPacketLoss

2026-04-03 14:27:48

On March 15, the website of the National Financial Regulatory Administration released a notice. To maintain order in the personal loan market, protect the lawful rights and interests of financial consumers, and improve the quality and efficiency of financial services, the Financial Regulatory Administration, together with the People’s Bank of China, recently jointly issued the Measures for Disclosing the All-in Comprehensive Financing Cost for Personal Loan Business (hereinafter referred to as the “Measures”), which will come into effect on August 1, 2026.

Disclosing the all-in comprehensive financing cost for personal loan business means that the Financial Regulatory Administration and the People’s Bank of China, in a serious implementation of the decisions and arrangements made by the Party Central Committee and the State Council, and with a profound grasp of the political and people-centered nature of financial work, coordinate efforts to prevent risks, strengthen regulation, and promote high-quality development. It is also a powerful measure to enhance coordination between financial supervision and monetary policy and to improve the quality and efficiency of financial services for the real economy. The Measures will help address issues such as non-standard and non-transparent disclosure of interest and fee information in personal loan business, better protect the lawful rights and interests of financial consumers, facilitate the transmission of financial policies benefiting people, and promote the standardized and healthy development of the industry.

The Measures consist of 11 articles. Within the existing regulatory framework for information disclosure of loan business, they further specify the scope of coverage, operational methods, and relevant steps for disclosure of interest and fee information for personal loan business. They require the lender to display a comprehensive financing cost disclosure statement to the borrower, clearly disclose the interest and fee costs of personal loans, and effectively ensure that the requirements for disclosure of interest and fee information for personal loan business are implemented and deliver results.

In the next step, the Financial Regulatory Administration and the People’s Bank of China will deeply practice the philosophy of finance for the people, strengthen regulatory coordination between the central and local levels, and guide the implementation of the Measures, so as to better protect the lawful rights and interests of financial consumers and provide strong support for promoting high-quality economic and social development.

Measures for Disclosing the All-in Comprehensive Financing Cost for Personal Loan Business

The all-in comprehensive financing cost for personal loan business referred to in these Measures means all kinds of interest and fees related to the loan that are borne by the borrower, including but not limited to normal performance costs such as loan interest, installment charges, and credit enhancement service fees, as well as contingent costs in default situations such as overdue penalty interest. The lender shall determine the annualized all-in comprehensive financing cost level in a reasonable manner in accordance with laws and regulations.
When a lender conducts personal loan business, it shall display an all-in comprehensive financing cost disclosure statement to the borrower. The all-in comprehensive financing cost disclosure statement shall indicate the principal amount of the loan, and list item by item the interest and fee items charged by the lender and its cooperating institutions, along with their charging methods, charging standards, and charging entities. On this basis, the annualized all-in comprehensive financing cost borne by the borrower in normal performance situations shall be calculated in an integrated manner. At the same time, it shall list item by item the contingent cost items and their charging standards and charging entities in default situations such as overdue or misuse. The charging standards for each interest and fee item borne by the borrower in normal performance situations shall be converted into annualized levels in accordance with requirements such as the “People’s Bank of China Announcement” (No. 3 [2021]) and others. The all-in comprehensive financing cost disclosure statement shall also clearly indicate that, in addition to the cost items already disclosed, the lender and its cooperating institutions will no longer charge the borrower any other interest and fees related to the loan.
The lender shall clearly disclose the upper limit of the all-in comprehensive financing cost for personal loans under normal performance situations of borrowers through channels such as business premises and official websites. For personal loan business handled on-site, before signing the loan contract or processing installments, the borrower shall sign and confirm the all-in comprehensive financing cost disclosure statement. For personal loan business handled online, the lender shall display the all-in comprehensive financing cost disclosure statement to the borrower in the form of a pop-up window, set a mandatory reading time, and obtain confirmation from the borrower before signing the loan contract or processing installments.

For installment payment business handled in online consumer scenarios, the lender shall clearly display the loan principal, installment arrangements, and the service fees to be charged, the charging entity, the annualized all-in comprehensive financing cost under normal performance situations, as well as the contingent cost items and their charging standards under default situations, in a prominent and clear manner on the consumer order payment page. At the same time, it shall clearly indicate that, except for the cost items already disclosed, no other interest and fees shall be charged.

If the related financing costs change due to reasons such as adjustments to the interest rate pricing benchmark or the launch of promotional activities, the lender shall promptly inform the borrower.
In the cooperation agreement signed by the lender with the cooperating institutions, it shall specify the responsibilities and obligations of all parties for implementing the requirements for disclosing the all-in comprehensive financing cost. The lender shall strengthen the management of cooperating institutions, take corrective measures in a timely manner against any noncompliance or breach by cooperating institutions. If the circumstances are serious, measures such as terminating the cooperation, pursuing losses in accordance with the law, and holding legal responsibility shall be taken.
Relevant industry associations shall cooperate with financial management departments to play the role of industry self-regulation. They shall guide and supervise industry institutions to implement the requirements for disclosing the all-in comprehensive financing cost for personal loan business, and work together to create a fair and transparent market environment.
When borrowers handle personal loan business, they shall reasonably assess their own income level and debt repayment capacity, avoid over-leveraging, and choose loans through regular channels.

Borrowers shall pay attention to the all-in comprehensive financing cost of the loan, and fully understand information such as the financing cost items, charging methods, charging standards, annualized level, charging entities, and default liabilities.

The National Financial Regulatory Administration and its dispatched institutions, the People’s Bank of China and its sub-branches, and financial management institutions at all local levels shall strengthen supervision and management, and urge lenders to implement the work of disclosing the all-in comprehensive financing cost for personal loan business. For lenders that fail to carry out disclosure work in accordance with the requirements of these Measures, for those with cooperating institutions that are unmanaged or beyond control, or for those whose cooperation behavior causes significant risk losses, such lenders shall be held accountable and punished according to law and regulations and take corresponding regulatory measures. At the same time, they shall coordinate with relevant departments to severely crack down on illegal intermediary activities in the loan sector.
The lenders referred to in these Measures are financial institutions and local financial organizations such as commercial banks, rural cooperative banks, rural credit cooperatives, auto finance companies, consumer finance companies, corporate group finance companies, trust companies, and small loan companies. Cooperating institutions refer to third-party institutions that cooperate with lenders in areas such as marketing and customer acquisition, guarantee and credit enhancement, and other related activities to carry out personal loan business.
The personal loans referred to in these Measures mean foreign and domestic currency loans issued by lenders to eligible natural persons for purposes such as personal consumption and production and business operations, in accordance with the “Personal Loan Administration Measures” (Order No. 3 of 2024 of the National Financial Regulatory Administration).
These Measures shall come into effect on August 1, 2026.

(National Financial Regulatory Administration)

(Editor: Qian Xiaorui)

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