What legal consequences do people face for using fake bank statements to apply for loans?

Using fake bank statements to apply for loans is an illegal act that may lead to both civil and criminal liabilities.

In civil aspects, according to the Civil Code of China, a contract formed through fraud is voidable. Once the bank finds out about the fake materials, it can request the court or arbitration institution to revoke the loan contract. The borrower must return the loan principal immediately and may also need to compensate the bank for losses like interest and handling fees. Moreover, the borrower's credit record will be severely damaged—they may be blacklisted by financial institutions, making it hard to get loans, credit cards, or even housing provident fund support in the future.

In criminal aspects, if the amount involved is large (usually over 10,000 yuan, with specific standards varying by region), this behavior may constitute loan fraud under Article 193 of the Criminal Law of China. The penalties include fixed-term imprisonment, criminal detention, fines, or property confiscation. For example, those with large amounts may face up to five years in prison and fines; those with huge amounts or serious circumstances may get five to ten years; and those with especially huge amounts may face more than ten years or life imprisonment.

Practical advice: First, never attempt such acts—immediately stop if you're considering it. If you've already submitted fake materials but haven't received the loan, take the initiative to confess to the bank to mitigate consequences. If you're under investigation, cooperate actively with authorities and seek professional legal help promptly to protect your rights.