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.

6. 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: Standing Committee of the National People's Congress (2020). Criminal Law Amendment (11) (Article 11, amends Article 175-1 of the Criminal Law). <https://www.spp.gov.cn/spp/fl/202012/t20201227_503700.shtml>; National People's Congress (1997). Criminal Law (88, 193, Article 280). <https://www.spp.gov.cn/spp/fl/201802/t20180206_364975.shtml>; Supreme People's Procuratorate of China, Ministry of Public Security of China (2022). Provisions on the standards for filing and prosecution of criminal cases under the jurisdiction of public security organs (2) (Articles 22, 45). <https://www.spp.gov.cn/spp/xwfbh/wsfbt/202204/t20220429_555906.shtml>; Supreme People's Procuratorate of China (2026). There is a money laundering gang behind the loan fraud assembly line (Procuratorate Daily). <https://www.spp.gov.cn/spp/zdgz/202604/t20260428_726494.shtml>; National People’s Congress Standing Committee (2012). Exit and Entry Administration Law (Article 12). <https://www.nia.gov.cn/n741440/n741547/c1013311/content.html> (National Immigration Administration); National People's Congress Standing Committee (2023 amendment). Civil Procedure Law (Article 266). <https://amr.guizhou.gov.cn/zwgk/xxgkml/jcxxgk/zcfg/fl/202401/t20240129_83645867.html> (Reprinted by Guizhou Provincial Market Supervision Bureau)

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.