Legal basis: Article 175-1 of the Criminal Law of People's Republic of China (PRC): Crime of defrauding loans, bill acceptance and financial bills. Whoever defrauds a bank or other financial institution of loans, acceptance bills, letters of credit or guarantees, thus causing heavy losses to the bank or other financial institution or having other serious circumstances, 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.
Article 680 of the Civil Code of People's Republic of China (PRC) prohibits usury and the determination of loan interest, and the loan interest rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.