Timothy Morano
Sep 06, 2024 01:15
Binance Loans launches Fixed Rate Loans, offering users predictable rates for stablecoin borrowing and lending. Learn more about this new financial service.
Binance Loans has announced the introduction of Fixed Rate Loans, aimed at providing users with more options for stablecoin borrowing and lending with predictable rates. According to Binance, this new service offers a fixed-term loan with a custom Annual Percentage Rate (APR) fixed for the entire order period, ensuring a smooth and straightforward financial experience for both suppliers and borrowers.
How Binance Fixed Rate Loans Work
The Fixed Rate Loans service allows users to either borrow or supply funds with a fixed interest rate. Here’s how it works:
To Borrow on Fixed Rate Loans
- Place an Order: Click [Place an order] – [I want to Borrow] to set up borrow information or click [Borrow] next to your preferred order under “Borrow Market”.
- Set up Collateral: Select eligible assets from your Spot Wallet as collateral to meet the Initial Loan-to-Value (LTV) requirement.
- Confirm Order: Review and confirm the order details and the Terms & Conditions, then click [Confirm].
- Order Matched: Once the order is matched, your borrowed funds minus the pre-calculated interest will be transferred to your Spot Wallet.
- Repayment: Repay the loan in full before the expiry date to avoid the Late Fee.
To Supply on Fixed Rate Loans
- Place an Order: Click [Place an order] – [I want to Supply] to set up supply information or click [Supply] next to your preferred order under Supply Market.
- Confirm Order: Review and confirm the order details and the Terms & Conditions, then click [Confirm].
- Order Matched: Once the order is matched, your supplied funds will be transferred from your Spot Wallet and will be principal-protected by Binance for the duration of the order.
- Repayment: After the loan expires, your loaned assets and return interest will be delivered to your Spot Wallet within 24 hours following the expiry date.
About Binance Fixed Rate Loans
Binance Fixed Rate Loans aims to create a stable and user-friendly financial environment by allowing users to customize their interest rate and offering predictable costs and returns, specifically for stablecoins. The platform effectively matches the needs of suppliers and borrowers. The Fixed Rate Loan service is over-collateralized, supporting multi-asset collateral to reduce liquidation risk. It also features an efficient automated process with auto-repay and auto-renew options. Managed by Binance, it ensures a smooth and straightforward experience for all users.
Additional Information
For detailed information, users can refer to the Fixed Rate Loans FAQ, Flexible Loans FAQ, and VIP Loan FAQ available on Binance’s support page. Additionally, users are advised to read the Binance Fixed Rate Loans Terms and Conditions before placing any orders.
Notes for Borrowers and Suppliers
- Borrowers’ collateral assets will be frozen in their Spot Wallet upon placing an order and will be automatically transferred out once the order is matched. Loan interest is charged in advance, and borrowers are responsible for monitoring and adjusting the LTV.
- Suppliers’ assets will be frozen in their Spot Wallet upon placing an order and will be principal-protected by Binance once the order is matched. No interest will accrue before the order is matched, and accrued return interest will be distributed within 24 hours after the expiry date.
This new offering by Binance Loans marks a significant step towards providing more stable and predictable financial services in the cryptocurrency space.
Image source: Shutterstock
