Loan prime rates stay unchanged in China

21 Jul '25

1 min read

Loan prime rates stay unchanged in China

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Insights

At 3 per cent, China's one-year loan prime rate remained unchanged today from the previous month, according to the National Interbank Funding Centre.
The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.5 per cent.
The weighted average interest rate for new business loans fell to about 3.3 per cent in H1 2025—down by 45 bps YoY.

At 3 per cent, China's one-year loan prime rate (LPR), a market-based benchmark lending rate, remained unchanged today from the previous month, according to the National Interbank Funding Centre.

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.5 per cent.

LPRs reflect the level of financing costs for households and businesses, with lower rates implying less burdens for borrowers and stronger support for economic activity.

The weighted average interest rate for new business loans fell to about 3.3 per cent in the first six months this year—down by 45 basis points (bps) year on year (YoY), while the rate for new personal mortgages dropped to around 3.1 per cent—a decrease of 60 bps YoY, a state-controlled news outlet reported.

Fibre2Fashion News Desk (DS)

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