Binance Now Lets You Get a Loan Secured by Your Cryptoassets

Siamak Masnavi

On Tuesday (March 31), Crypto exchange Binance launched Binance Loans, a service that provides loans in BUSD or USDT providing that you have some cryptoassets that you can offer as collateral.

According to Binance's announcement, from today until 00:00 UTC on April 14, "all users of the Binance Loans service, across any of the below-mentioned loan periods, will receive a 20% discount on the daily interest rate, with the lowest rate being 0.0224%."

Binance Loans Rates on 31 Mar 2020.png

Binance also points out that Binance Loans will "continue to be flexible and actively provide a varying range of options for supported crypto assets, interest rates, collateral assets, and maximum loanable limits based on market conditions and our internal risk management."

Currently, you can use either Bitcoin (BTC) or Ether (ETH) as collateral, as you can see from the screenshot shown below:

Binance Loans Interface Screenshot on 31 Mar 2020.png

Here are a few things worth knowing about Binance Loans:

  • The service is available to any registered user of Binance.
  • Loans are available for the following periods: 7 days, 14 days, 30 days, and 90 days.
  • Interest is calculated on a daily basis.
  • Interest and principal need to be repaid manually. (There is no fee for repayment in advance.)
  • Currently, the LTV for Bitcoin is 65% and the LTV for Ether is 55%.

All Images Courtesy of Binance