BEIJING — China will launch a pilot re-lending program for inclusive elderly care to better serve its aging population, the central bank said in a statement on April 29.

The pilot program, initiated by the People's Bank of China and the National Development and Reform Commission, will encourage financial institutions to offer preferential loans to elderly-care service providers and reduce their financing costs, according to the statement.

The country is set to implement a re-lending cap of 40 billion yuan (about $6.04 billion) for the program, with an interest rate at 1.75 percent and a one-year term. Each term is allowed to be extended twice.

The re-lending amount will be equivalent to the loan principal issued by financial institutions.

Financial institutions to be involved in the program include the China Development Bank, the Export-Import Bank of China, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank and the Bank of Communications.

It will be carried out in the provinces of Zhejiang, Jiangsu, Henan, Hebei and Jiangxi.