(Yicai Global) May 19 -- MYbank, Ant Financial Services’ online-only lender, will issue CNY10 billion (USD1.4 billion) in interest-free loans to help small firms and self-employed households in China get back on their feet after the coronavirus crisis.

From May 21, eligible micro and small merchants in 81 cities can apply to MYbank and Alipay, Ant Financial’s mobile payment app, for up to two interest-free loans of CNY10,000 (USD1,407) each for one month, online news outlet The Paper reported today. The cities were not identified.

The loan principal will be provided by the country’s three policy banks: China Development Bank, the Export-Import Bank of China and the China Agricultural Development Bank, the report said. They are non-profit financial institutions that help to carry out the government’s socio-economic policies and can take part in policy financing activities in specific sectors.

Since the Covid-19 outbreak, over CNY19 billion (USD2.7 billion) has been issued in discount vouchers by both social funds and local governments to consumers in over 170 cities across 28 provinces to encourage consumption and reignite the economy. The 81 cities covered by the MYbank scheme participated in the scheme.

Issuing interest-free loans alongside the coupons could help promote the recovery of small businesses, said Jin Xiaolong, president of Hangzhou-based MYbank.

Editor: Kim Taylor