Zhoushan in East China's Zhejiang province has upgraded its policies on guaranteed loans for start-ups by lowering its rates by 19 percent, local media reported on April 15.

The employment management center of Zhoushan inked a cooperation agreement on entrepreneurial guaranteed loans with three banks in the city on March 30.

According to the agreement, the lowest interest rate for new entrepreneurial guaranteed loans will be 19 percent lower than previously.

"Such a measure will alleviate entrepreneurs from working capital pressure and save the government on interest subsidies," said a senior official from the employment management center.

A total of 105 service outlets of the three banks are able to offer such loans, including those in towns and subdistricts on remote islands.

"The loan limit doubled and all interest in the first year will be waived. It's really timely assistance for our startups," said Hu Baiyu, head of Zhejiang Lvguo Culture Media Co, who received her first entrepreneurial guaranteed loans after the new measure took effect.

Hu added that thanks to the loan, she was more confident in expanding her business this year.

Statistics show that Zhoushan has issued 460 million yuan in entrepreneurial guaranteed loans to more than 1,500 entrepreneurs and offered 22.49 million yuan in interest subsidies since 2013.