The loan contract suspected of fraud is invalid. The contract signed by fraud violates the provisions of China's criminal law and harms the interests of the state. It is a contract that covers up illegal purposes in a legal form. Therefore, according to the situation that the contract stipulated by Chinese law is invalid, the contract signed in this case is of course invalid. Loan fraud is an illegal act, and the contract concluded by it is invalid according to law.

legal ground

According to Article 153 of the Civil Code of People's Republic of China (PRC), which came into effect on 202 1 1.

A civil juristic act that violates the mandatory provisions of laws and administrative regulations is invalid. However, unless mandatory provisions do not invalidate civil legal acts.