The nature of defrauding loans is a criminal case. Whoever obtains a loan, bill acceptance, letter of credit or letter of guarantee from a bank or other financial institution by deception, thus causing heavy losses to the bank or other financial institution, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined.

Legal objectivity:

Article 175-1 of the Criminal Law of People's Republic of China (PRC), whoever obtains loans, acceptance bills, letters of credit or guarantees from banks or other financial institutions by deception, thus causing heavy losses to banks or other financial institutions, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined; Whoever causes particularly heavy losses to banks or other financial institutions or has other particularly serious circumstances shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined. If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.