China’s central bank will increase relending quotas by RMB 300 billion ($46.4 billion) to help banks provide loans to small and medium-sized companies and self-employed individuals, reports Caixin.
The move is part of the central government’s wider measures to maintain the stability of market entities and employment, and support economic growth, according to a State Council meeting chaired by Premier Li Keqiang.
The cabinet also decided to step up aid to students from poor families through a national student loan program. Starting in the fall semester, the maximum annual loan amount for undergraduate students will be increased 50% from RMB 8,000 to RMB 12,000 and for graduate students 33.3% from RMB 12,000 to RMB 16,000. Interest on the loans will be fully subsidized by the government while students are in school, and banks offering student loans will get compensation.