Chinese province Jilin offers 200,000 yuan ‘baby loan’ to counter shrinking population

For decades now, China's policy on children has witnessed rapid transition, especially on how many children should a couple have.

From their 'one-child policy' in 1980 to counter the snowballing population and accelerate economic growth to the three-children policy now as a counter to the swiftly dwindling population, China has been oscillating on demographic extremes.

Now, the Chinese province Jilin, which has been witnessing the fastest-shrinking population, has rolled out a loan scheme to encourage couples to get married and have children, as the country desperately tries to reverse the fall in childbirths.

China's Jilin province is set to support banks to provide up to 200,000 yuan (Rs 23.5 lakh approx.) of "marriage and birth consumer loans" to married couples, as per an official blueprint on policies to promote population growth. The proposal also includes discounted interest rates for the 'baby loans' that vary according to the number of kids a couple has. 

China's birth rate over the last few years has witnessed a rapid fall; as a result, fewer and fewer couples have kids. Despite the Chinese government's desperate attempt to abandon the limit on the number of children a married couple can have and make raising a family less expensive, the slump has continued. Demographers have now estimated that China's population may have already started depleting.

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Jilin's policies to promote population growth also includes allowing married couples from other Chinese provinces to avail a residence permit called hukou and also providing access to public services in the province if they have children and register them there.

According to the recent population policy document issued, married couples that have two or three children will be eligible to get tax discounts if they set up a small business in the province. Jilin also has extended maternity leave for women from 158 to 180 days and paternity leave for men from 15 to 25 days. The province will also now provide parental leave of up to 20 days every day before their children turn three.

Raising a child in China is an expensive affair. As per a 2005 study cited by Reuters, it costs 490,000 yuan, i.e. approximately Rs 56.7 lakh for an ordinary couple to raise a child in China. This number increased four-folds by 2020, with reports suggesting the cost has gone up to 1.99 million yuan, i.e. approximately Rs 2.35 crore to raise a child in the country. Hence, it does not come as a surprise that couples choose not to have children.