If the two parties sign a real sales contract, it is ok for the party applying for a loan from the court to have a good credit standing. However, if the two parties sign a false purchase and sale contract to borrow money from the bank, it constitutes the crime of loan fraud. The crime of loan fraud (article 193 of the Criminal Law) refers to the act of fabricating false reasons such as introducing funds and projects for the purpose of illegal possession, using false economic contracts, false certification documents, using false property rights certificates as guarantees, repeatedly guaranteeing beyond the value of collateral, or defrauding banks or other financial institutions of loans or a large amount by other means. The crime of loan fraud belongs to a kind of financial crime.

Legal objectivity:

Article 193 of People's Republic of China (PRC) Criminal Law&; Nbsp nbsp nbsp nbsp nbsp nbsp nbsp nbsp nbsp; The crime of loan fraud is in any of the following circumstances. Whoever defrauds banks or other financial institutions for the purpose of illegal possession, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also 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 particularly 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 his property shall be confiscated: (1) fabricating false reasons such as introducing funds and projects; & ampnbsp; (2) Using false economic contracts; & ampnbsp (3) using false documents; & ampnbsp (4) Using false property rights certificates as collateral or repeatedly guaranteeing beyond the value of collateral; & ampnbsp (5) Obtaining loans by other means.