Home » Others » Binance Introduces Fixed-Rate Loans for Stablecoins

Binance Introduces Fixed-Rate Loans for Stablecoins

06.09.2024 11:00 2 min. read Alexander Stefanov
SHARE: SHARES
Binance Introduces Fixed-Rate Loans for Stablecoins

Binance Loans has launched a new feature offering fixed-rate loans, which aims to provide users with predictable borrowing costs.

According to their latest blog update, this feature allows users to secure a set interest rate for the full term of their loan, benefiting from consistent annual percentage rates (APRs) throughout.

At present, the fixed-rate loan option is available for two stablecoins: USDC and FDUSD. Loans in USDC are offered with a 7.8% fixed interest rate for a 30-day period, with a minimum loan amount of 50,000 USDC. On the other hand, FDUSD loans come with an 11% fixed rate for the same term, with a minimum of 50,000 FDUSD.

To access these loans, users must place an order on the Binance platform and select their collateral. After the order is matched, the funds are credited to the user’s Spot Wallet, after deducting any predetermined interest. Borrowers must repay the loan by the due date to avoid incurring late fees, which are set at three times the interest rate of the loan.

For lenders, Binance ensures that their principal amount is safeguarded once an order is matched, with interest starting to accrue from that point. The principal and earned interest are returned at the end of the loan period.

Binance also manages the loans to minimize risks, with a focus on over-collateralization to prevent liquidations. The platform provides features like automatic repayment and renewal to enhance the borrowing experience.

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.

Telegram

SHARE: SHARES
More Others News
No Comments yet!

Your Email address will not be published.