Binance will launch fixed rate loans in stablecoins USDC and FSUSD

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Say hello to fixed rate loans!

We now have more loan and stablecoin loan options with fixed terms and custom APR.

More info ➡️ https://t.co/VZ9684CDbK pic.twitter.com/Pt0HmmKNT7

— Binance (@binance) September 5, 2024

The platform currently offers fixed rate loans for two stablecoins: USDC and FDUSD. For USDC, borrowers can access loans at a fixed rate of 7.8% for 30 days with a minimum loan amount of USDC 50,000. FDUSD loans are offered at a fixed rate of 11% for 30 days with a loan amount of 50,000 FDUSD.

To use fixed rate loans, users must first place an order through the Binance platform, selecting eligible assets as collateral. Once an order is matched, the borrowed funds are transferred to the user’s Spot wallet, minus any pre-calculated interest. It is essential that borrowers repay the loan by the due date to avoid late fees, which are calculated at three times the interest rate on the loan.

Providers, on the other hand, will have their funds principal protected by Binance once an order is matched, with return interest accruing accordingly. The assets provided, along with accrued interest, are returned after the loan expires.

Binance ensures a smooth process by managing loans, which are over-collateralized to minimize liquidation risks. The platform also supports auto-refund and auto-renew options to enhance user convenience.

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