Binance Introduces Fixed Rate Loans for Stablecoin Borrowing

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

1. 
   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”.
2. 
   Set
   up
   Collateral:
   Select
   eligible
   assets
   from
   your
   Spot
   Wallet
   as
   collateral
   to
   meet
   the
   Initial
   Loan-to-Value
   (LTV)
   requirement.
3. 
   Confirm
   Order:
   Review
   and
   confirm
   the
   order
   details
   and
   the
   Terms
   &
   Conditions,
   then
   click
   [Confirm].
4. 
   Order
   Matched:
   Once
   the
   order
   is
   matched,
   your
   borrowed
   funds
   minus
   the
   pre-calculated
   interest
   will
   be
   transferred
   to
   your
   Spot
   Wallet.
5. 
   Repayment:
   Repay
   the
   loan
   in
   full
   before
   the
   expiry
   date
   to
   avoid
   the
   Late
   Fee.

To
Supply
on
Fixed
Rate
Loans

1. 
   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.
2. 
   Confirm
   Order:
   Review
   and
   confirm
   the
   order
   details
   and
   the
   Terms
   &
   Conditions,
   then
   click
   [Confirm].
3. 
   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.
4. 
   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