If you are simply unable to repay, you will not be sentenced.

Inability to repay a loan is a common civil dispute. There will be no penalties for civil disputes, only criminal charges will be imposed. However, the bank will sue the borrower in court due to the borrower's inability to repay. The court will then order the borrower to repay the loan, but because the borrower is unable to repay, the borrower's assets will be seized and the borrower will be blacklisted in the credit reporting system.

If you are convicted of loan fraud among financial fraud crimes, you will be sentenced to more than ten years in prison or life imprisonment.

If it is proven that fake supporting documents, economic contracts or false guarantee certificates were used when applying for bank loans, they can be convicted of loan fraud.

The crime of fraud refers to the act of defrauding a relatively large amount of public or private property by fabricating facts or concealing the truth for the purpose of illegal possession. The basic structure of this crime is: the perpetrator commits fraud for the purpose of illegal possession → the victim develops a misunderstanding → the victim disposes of the property based on the misunderstanding → the perpetrator obtains the property → the victim suffers property losses.

Legal Basis

"Criminal Law of the People's Republic of China"

Article 193 The crime of loan fraud falls under any of the following circumstances: Whoever defrauds banks or other financial institutions of loans for the purpose of illegal possession, and the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; if the amount is huge or there are other serious circumstances, The person shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; if the amount is particularly huge or there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment and shall also be fined not less than 50,000 yuan. Fines of less than 500,000 yuan or confiscation of property:

(1) Fabricating false reasons for introducing funds, projects, etc.;

(2) Using false economic contracts;

(3) Using false certification documents;

(4) Using false property rights certificates as guarantees or repeating guarantees exceeding the value of the collateral;

(5) Using other methods to defraud loans.