China Mandates Full Loan Cost Disclosure for Borrowers from August 2026

Effective August 1, 2026, the rules require lenders to clearly itemize all borrowing costs—including loan interest rates, guarantee fees, service fees, and insurance premiums—in a standardized disclosure table, ensuring borrowers fully understand the composition of interest and fees before signing agreements.

In recent days, multiple banks, consumer finance companies, and third-party platforms have launched the Comprehensive Financing Cost Disclosure Table in their lending processes, making borrowing costs visible at a glance. The measure aims to eliminate information asymmetry in lending and standardize fee practices among lenders and their partners. As of end-June 2025, China had 4,070 banking financial institution legal entities; with numerous non-bank lending organizations also in operation, the rules must cover a wide range of lending entities.

On the data front, once the rules take effect, borrowers will be able to assess loan costs more accurately based on the disclosure table, avoiding additional burdens arising from opaque fees. Financial regulators and the People's Bank of China will continue to monitor implementation to ensure all institutions strictly comply with the disclosure requirements in their lending operations.