(Yicai Global) Feb. 17 -- The government of Zhejiang province is offering loans of up to CNY500,000 (USD78,900) to new graduates who come to the coastal province to set up a business. Should they fail, it will write off the first CNY100,000 (USD15,778), an official said today.

Zhejiang welcomes college graduates to come to the eastern Chinese province, which is home to e-commerce giant Alibaba Group Holding and carmaker Geely Holding among many others, to start a business, Chen Zhong, deputy director of Zhejiang Province Human Resources and Social Security Department, said today.

The province, which had the fourth highest gross domestic product in the country last year, is offering loans of between CNY100,000 and CNY500,000 for them to get started, he said. Should they fail, it will write off the first CNY100,000 and 80 percent of the remainder, so as not to discourage them, he added.

For those who choose to work in the fields of agriculture, elderly care and housekeeping, they will each receive a one-off subsidy of CNY100,000 (USD15,788) and a further CNY10,000 a year for three years.

Zhejiang, which has 23 million workers from outside the province, is also prepared to subsidize their living expenses and the buying or renting of houses for between CNY20,000 and CNY400,000. Graduates from poor families will each be given CNY3,000 for them to use to find a job or set up a business. College interns will also be given a living expense allowance.

Editor: Kim Taylor