Local regulations and detailed rules for executing court decisions may be different. However, in principle, cross-regional loans are violations of administrative regulations and should bear corresponding administrative responsibilities according to law, but the commitment of administrative responsibilities does not affect the effectiveness of loan contracts.

Take Chongqing Higher People's Court's Answers to Several Questions on Trial of Commercial Cases of Small Loan Companies, Guarantee Companies and Pawnshops as an example;

The people's court shall generally hold that the microfinance company issues loans in violation of the provisions of Articles 24, 25 and 33 of the Interim Measures for the Pilot Management of Small Loan Companies in Chongqing Municipality on the amount, interest rate and region.

The provision that small loan companies are not allowed to issue loans beyond the quota, benchmark interest rate or region is aimed at effectively administering small loan companies and controlling industry risks, and does not involve the private law relationship between equal civil subjects. Therefore, small loan companies violate the relevant administrative regulations and operate loan business beyond the quota, interest rate and region, which is an act of violating administrative regulations and should bear corresponding administrative responsibilities according to law, but the commitment of administrative responsibilities does not affect the effectiveness of loan contracts.