Legal basis: general rules of loans
Sixty-first administrative departments at all levels, enterprises and institutions, supply and marketing cooperatives and other cooperative economic organizations, rural cooperative foundations and other foundations shall not engage in financial services such as deposits and loans. Enterprises shall not handle lending or disguised lending financing business in violation of state regulations.
Seventy-third administrative departments, enterprises and institutions, joint-stock cooperative economic organizations, supply and marketing cooperatives, rural cooperative foundations and other foundations grant loans without authorization; Where an enterprise borrows loans without authorization or in disguised form, the People's Bank of China shall impose a fine of not less than one time but not more than five times the illegal income and ban it. "It is stipulated that the lender's interest shall be confiscated, and at the same time, the lender shall be fined more than one time but less than five times the interest earned, and the borrower shall be fined equivalent to the bank interest.