NFRA and PBOC Issue Personal Loan Cost Disclosure Rule, Effective August 2026

The National Financial Regulatory Administration and the People's Bank of China jointly issued the Regulation on Clearly Displaying Comprehensive Financing Costs for Personal Loans in March 2026, which will take effect on August 1, 2026. Hengfeng Bank announced that it will orderly promote the disclosure of comprehensive financing costs for personal loans in accordance with the regulation, fully implementing the requirement from August 1, 2026. When customers apply for personal loans, the bank will display and require signing of the Personal Loan Comprehensive Financing Cost Disclosure Form, which lists the loan principal amount, cost items, collection methods, annualized levels, collecting entities, as well as contingent cost items and their collection standards and entities in the event of loan default or misappropriation.

Xiamen Bank will apply the comprehensive financing cost disclosure requirement to all new personal loans issued from August 1, 2026, including personal housing mortgage loans, personal comprehensive consumption loans, and personal business loans. Jilin Bank published its personal loan comprehensive financing cost disclosure form and upper limit, stating that under normal performance, the annualized comprehensive financing cost will not exceed 18%.

Zheshang Bank independently developed a comprehensive financing cost calculation engine to ensure calculation results are consistent with the official mini-program, and implemented functions such as pop-up display, mandatory reading, and change notifications. China Post Consumer Finance Co. , Ltd. published a Comprehensive Financing Cost Disclosure Form covering loan principal, loan interest, credit enhancement service fees, annualized comprehensive financing cost under normal performance, as well as contingent costs under default scenarios such as prepayment penalties, overdue interest, and misappropriation penalties.