A guide to calculating the total cost of corporate loans, including both interest and non-interest expenses, is now available under the Financial Business-Friendly Policy Q&A series.

The total cost of corporate loans includes interest expenses, which are clearly stated in the loan contract, and non-interest expenses such as mortgage fees, guarantee fees, and intermediary service fees. In January 2025, the Guangdong Branch of the People's Bank of China launched a pilot program in Shantou and Dongguan cities, as well as selected financial institutions in Guangzhou and Foshan, to disclose the total cost of corporate loans. By July, the pilot was expanded to 16 cities, including Zhuhai and Shaoguan. Currently, the disclosure of total corporate loan costs has been extended to all domestic bank institutions in the province.

To help borrowers clearly, accurately, and comprehensively understand the total cost of loan financing, a tool is recommended: the "Cost Trial Calculation" module on the public account "Market Interest Rate Pricing Self-Regulatory Mechanism." This tool is applicable to businesses applying for loans.