Whoever, in violation of state regulations, issues loans in huge amounts or causes heavy losses shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 10,000 yuan but not more than 100,000 yuan. If the amount is especially huge or especially heavy losses are caused, he shall be sentenced to fixed-term imprisonment of not less than five years and fined not less than 20,000 yuan but not more than 200,000 yuan.

According to Querying Fatu. com, the crime of illegal issuance of reverse loans is to borrow new loans and return old ones in the loan business. In judicial practice, the act of borrowing the new and returning the old is regarded as the perpetrator's inability to return the funds for fraud, which subjectively has the purpose of illegal possession, thus constituting the crime of financial fraud. If there is such behavior in the process of loan, it is easy to be identified as loan fraud.