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China's New Policy to Clear Defaulted Loan Records

12/23/2025

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Story summary
  • The People’s Bank of China, the central bank, announced a credit-rehabilitation policy to assist borrowers who defaulted on small loans.
  • It targets borrowers with debts up to 10,000 yuan incurred between 2020 and 2025.
  • If these debts are repaid by March 31, default records will be removed from credit reports.
  • The policy will roll out in phases starting in 2026 to help pandemic-affected borrowers rebuild credit and improve loan access.