China's banking regulator has lowered barriers for the establishment of consumer finance companies, which is in accordance with the country's effort to move toward a consumption-driven economy, experts said over the weekend.

China-based non-financial companies with annual revenue of at least 30 billion yuan ($4.9 billion) will be allowed to set up consumer finance companies starting from January 1 next year, the China Banking Regulatory Commission (CBRC) said in an amended regulation for consumer finance companies released Friday.

The requirement for the minimum equity stake held by the largest shareholder in a consumer finance firm will also be lowered to 30 percent from 50 percent, according to the CBRC.

The upper limit for loans that consumer finance firms can offer has also been amended to 200,000 yuan, rather than an amount equal to five times the borrower's monthly salary, the CBRC said. 

In 2010, China launched a pilot consumer finance program in four cities - Beijing, Shanghai, Tianjin and Chengdu. So far, there are four such firms across the country, providing consumers with loans for goods and services such as education and travel. But they are not permitted to hold deposits, or offer loans for automobiles or real estate.

The State Council has given its approval for the program to be expanded to 10 more cities, mainly second-tier ones, including Shenyang, Nanjing and Chongqing, the CBRC said.

Meanwhile, qualified financial institutions in Hong Kong and Macao will be allowed to establish consumer finance firms in the neighboring Guangdong Province.

The latest move is part of policymakers' plans to open up the finance sector to private investment, and will help the country boost domestic consumption, experts said.

"Banks have dominated the consumer lending sector in China, but as the country is moving toward a consumption-driven society, the authorities hope to build an improved network, comprised of banks, auto finance companies and consumer finance firms, to stimulate consumption," Zhao Xijun, deputy dean of the School of Finance at Renmin University of China, told the Global Times on Sunday.

But even after three years of the pilot program, consumer finance firms are still new to many consumers, most of whom are used to borrowing from commercial banks.

"I borrowed some money from my parents to decorate my new apartment. If loan rates offered by these consumer finance firms are acceptable, I may consider borrowing from them," Hou Chang, a resident of Nanjing, capital of East China's Jiangsu Province, told the Global Times Sunday.