Some people try to get you to “package loan applicants” for them and offer a commission based on the loan amount — don’t fall for it

Cost: There’s no cost at all. Just say no. Never lend your ID card or credit report to anyone, sign any loan contracts you haven’t read, or go to the bank to sign on someone else’s behalf.

In plain terms: Helping others “package” loan applications in order to get a cut of the proceeds is a form of fraud. One criminal gang of 126 members turned unemployed individuals into “prime customers” and tricked over 80 banks into issuing loans totaling more than 30 million yuan. Those who signed the loan documents on behalf of the applicants received 30% of each loan amount as a commission. Out of the 80 people convicted so far, 76 have been sentenced to between 1 year and 4 months and 6 years and 6 months in prison. Remember: the person whose name appears on the loan contract is legally responsible for repaying it.

Benefit: Committing fraud to obtain loans, acceptance letters, letters of credit, or guarantees from banks or other financial institutions is a serious crime. If such actions cause substantial financial harm, offenders face up to 3 years in prison plus a fine; if the damage is especially severe, sentences range from 3 to 7 years, also with fines. The threshold for police investigation is a direct financial loss exceeding 500,000 yuan. Those who fabricate investment projects, fake contracts, or forged documents to secure loans commit loan fraud — this crime is punishable by up to 5 years in prison and fines ranging from 20,000 to 200,000 yuan if the amount obtained is 50,000 yuan or more. Larger sums or more serious circumstances lead to sentences from 5 to 10 years, or even life imprisonment. Forging, altering, or selling official government documents or seals carries penalties of up to 3 years; more serious cases result in 3–10 years in prison. A notable case involved 126 criminals who created fake “prime customers” in 16 provinces and tricked over 80 banks out of more than 30 million yuan; 105 “front” applicants were prosecuted. In 2026, 76 of them received sentences of 1 year and 4 months to 6 years and 6 months for loan fraud, while four others were additionally convicted of money laundering and received sentences from 2 years and 4 months to 7 years and 6 months. Under the 2021 amendment to the Criminal Law, anyone who signs a loan contract becomes legally liable for repayment — even if they never intended to pay, the debt and negative credit record remain theirs. Attempts to flee abroad won’t help; fugitives can still be extradited years later. Those serving sentences, under investigation, or involved in civil disputes may be barred from leaving the country. For details on how to spot unauthorized loans taken out in your name, see Section 8, Item 9.

Evidence grade: A

Sources:全国人大常委会 (2020). 刑法修正案（十一）（第十一条，修改刑法第一百七十五条之一）. https://www.spp.gov.cn/spp/fl/202012/t20201227_503700.shtml；全国人大 (1997). 刑法（第八十八、一百九十三、二百八十条）. https://www.spp.gov.cn/spp/fl/201802/t20180206_364975.shtml；最高人民检察院、公安部 (2022). 关于公安机关管辖的刑事案件立案追诉标准的规定（二）（第二十二、四十五条）. https://www.spp.gov.cn/spp/xwfbh/wsfbt/202204/t20220429_555906.shtml；最高人民检察院 (2026). 骗贷流水线背后藏洗钱黑手（检察日报）. https://www.spp.gov.cn/spp/zdgz/202604/t20260428_726494.shtml；全国人大常委会 (2012). 出境入境管理法（第十二条）. https://www.nia.gov.cn/n741440/n741547/c1013311/content.html（国家移民管理局）；全国人大常委会 (2023 修正). 民事诉讼法（第二百六十六条）. https://amr.guizhou.gov.cn/zwgk/xxgkml/jcxxgk/zcfg/fl/202401/t20240129_83645867.html（贵州省市场监管局转载）

Notes: In one case, the defense argument “I intended to repay the loan” was rejected. Prosecutors proved that the defendants had no jobs or assets, had already spent their commission, and thus had no real intention of repayment. Those who withdraw funds on behalf of the gang may also be charged with money laundering. For information on using personal bank accounts for “side jobs” or receiving money on someone else’s behalf, see Section 5; for how to detect fraudulent loans taken out in your name, see Section 8, Item 9.