The current criminal law on loan defrauding is flawed. It requires reflection and improvement. On the basis of an empirical research into the precedent loan defrauding cases, under the guidance of the self－responsibility theory, this article advocates the timely decriminalization of the borrower as the victim and calls to account the lender’s legal responsibility. Legal enforcement on negative responsibility and the practical criminal law interpretation provides support for this measure. The rationale of the decriminalization of the borrower and the legal responsibility of the lender should be ensured according to the principle of a legally prescribed punishment for a specified purpose, instead of any arbitrary expansion of its application. Its purport is to seek an effective path for the balance and coordination between the borrower and the lender in their interest relationship, so as to solve actual problems such as financing difficulties in practice, which is a comprehensive and effective protection for both sides’ legal interests, and is an innovation and harmonious development of the socialist market economy in our country.