College graduates in the eastern Chinese province of Zhejiang will be able to take out loans of up to RMB 500,000 ($78,900) in order to start a business, safe in the knowledge that if the business were to fail, the government will help pay back at least 80% of the loan, reports Reuters.
The generous plan, unveiled at a news conference hosted by China’s state planner on Thursday, underscores official concerns about job prospects for the country’s millions of graduates in a labor market that has tightened due to slowing economic growth.
If graduates’ startup businesses go sour, the government can help pay at least 80% of their loans and 100% if it is less than RMB 100,000, Chen Zhong, vice director at Zhejiang province’s Human Resources and Social Security Department, told reporters. College graduates can also enjoy a living allowance and housing subsidies from RMB 20,000 to RMB 400,000 if they work in Zhejiang, China’s fourth-biggest province by economic output.