If you use false materials to defraud loans in the process of lending, you can be suspected of fraud. If private lending cannot be repaid, it is a civil dispute and does not involve criminal offences. You can ask for a judgment repayment through court prosecution.

According to the Criminal Code of People's Republic of China (PRC)

Article 313 Whoever refuses to execute the judgment or ruling of a people's court, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or a fine.

Extended data:

The crime of defrauding loans refers to the act of fabricating false reasons such as introducing funds and projects for the purpose of illegal possession, using false economic contracts, certificates or false property rights certificates as guarantees, and concealing the truth with other fictional facts to defraud banks or other financial institutions, resulting in a large amount of loans.

According to the provisions of the Criminal Law, whoever defrauds a large amount of loans shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall 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, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan;

If the amount is especially huge or there are other especially 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 but not more than 500,000 yuan or confiscated property.

References:

Baidu encyclopedia-loan fraud