Isn't the company patent loan illegal?

Not illegal.

According to Fage's inquiry, it is illegal for the company to issue patent loans. Patent belongs to intellectual property, which is an intangible property right and is protected by law. According to the Interim Measures for the Administration of Personal Loans, lenders require borrowers to apply for personal loans in writing, and require borrowers to provide relevant information that can prove that they meet the loan conditions.