The difference between routine loans and private lending is that routine loans generally have the purpose of intentional fraud and illegal possession. Using fraudulent means to conclude a loan contract with the other party to defraud property may violate the law on public security administration or constitute a crime of fraud. Private lending is not necessarily illegal, and both borrowers and lenders can conclude legal and effective loan contracts.

legal ground

Forty-ninth "People's Republic of China (PRC) Public Security Administration Punishment Law"

Theft, fraud, looting, looting, extortion or intentional damage to public or private property shall be detained for not less than five days but not more than ten days, and a fine of not more than 500 yuan may be imposed; If the circumstances are serious, he shall be detained for more than 10 and less than 15, and may also be fined less than 1000 yuan.

Article 266 of the Criminal Law of People's Republic of China (PRC)

Whoever defrauds public or private property in a relatively large amount shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated. Where there are other provisions in this Law, such provisions shall prevail.