This is a general announcement. The products and services described here may not be available in your area.
Dear Binance Community Members,
Binance Loans is launching fixed rate loans, which will open up additional opportunities for borrowing stablecoins with predictable rates. The innovative service offers loans for a fixed term with a user-selectable APR for the entire duration of the order. It is a clear and convenient financial solution for lenders and borrowers.
How Binance Fixed Rate Loans Work
How to apply for a fixed rate loan
Place an order. Click Place Order > I want to borrow, place the order and enter the loan details, or click Borrow next to the selected order in the Borrow Market section.
Collateral Setup: Select suitable assets from your spot wallet as collateral to meet the initial LTV (loan to collateral ratio) requirements.
Confirming the order. Check and confirm the order details, accept the terms of use and click "Confirm".
Order matching. Once the order is matched, your borrowed funds minus the pre-calculated interest will be transferred to the spot wallet. Check the order status in the My Order > Current Orders section.
Repayment: Pay off your loan in full before it expires to avoid late fees.
How to Provide Assets for Fixed Rate Loans
Place an order: Click “Place order > I want to be a supplier” to place an order and set up asset information, or click “Submit” next to the selected order in the “Supply Market” section.
Confirming the order. Check and confirm the order details, accept the terms of use and click "Confirm".
Order matching. Once the orders are matched, the funds you provided will be withdrawn from the spot wallet. The principal amount will be protected by Binance for the duration of the order. Interest earned will start accruing when the order is matched. Check the order status in My Order > Current Orders.
Repayment. After the loan term ends, the provided assets and accrued interest will be credited to your spot wallet within 24 hours after the expiration date. Check the assets in the Spot Wallet section.
Get a Fixed Rate Loan on Binance
Binance Loans Products
For more information, please see Fixed Rate Loans FAQ, Flexible Rate Loans FAQ, and VIP Loans FAQ.
About Binance Fixed Rate Loans
Binance Fixed Rate Loans aims to create a stable and user-friendly financial environment by allowing customizable interest rates and offering predictable value/income to users, particularly for their stablecoins. The platform effectively matches asset providers and borrowers. Fixed Rate Loans are overcollateralized and support a variety of assets for collateral, reducing the risk of liquidation. The service also includes efficient automated processes with automatic repayment and renewal features. Binance’s management ensures a simple and seamless experience for all users.
Notes
Please read the Binance Fixed Rate Loans Terms and Conditions before placing orders on the Binance Fixed Rate Loans platform.
For Borrowers:
Once a loan order is placed, the borrower’s collateral assets will be frozen in the spot wallet. They cannot be transferred or sold. If the borrower wants to access them, they will need to cancel the order with the status “Not matched”. Once the order is matched, your collateral assets will be automatically transferred from the spot wallet and held by Binance until the loan is fully repaid.
Interest on the loan is accrued in advance at the time of transfer of the provided assets. The amount received by the Borrower is equal to the loan amount minus the pre-calculated interest on the loan. In the event of early repayment of the loan by the Borrower or liquidation of the loan before the expiration of its term, the amount of interest payable on the loan will remain unchanged and will not be returned to the Borrower.
Borrowers are responsible for monitoring and adjusting their LTV. If the LTV of a loan reaches the liquidation level, the system will immediately force a liquidation. A liquidation fee of 2% of the loan amount is charged.
Pay your loans on time. A late payment penalty of three times the loan interest rate will be automatically charged hourly if the Borrower fails to repay the loan on the agreed end date.
For the Asset Provider:
Once a delivery order is placed, the Supplier's corresponding assets will be frozen in the spot wallet. They cannot be transferred or sold. If the borrower wants to access them, the order must be cancelled with the status "Not Matched".
Once the order is matched, the Provider's assets will be transferred from the spot wallet and will be protected by Binance as principal for the duration of the loan. The Provider will not be able to withdraw the provided assets before the loan expires or request early repayment.
Interest will not accrue until the order is matched. Accrued interest will be distributed along with the return of the assets you provided within 24 hours of the expiration date.
Users can view their orders in the Fixed Rate Loans > Current Orders section.
There may be discrepancies between the translation and the original English article. In this case, please read the original version of the announcement to get the most up-to-date and accurate information.
Thanks for support!
Binance Team
05.09.2024