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Crypto Loans
How to use “Binance Loans” Service
2020-06-11 08:12

What is "Binance Loans"

Binance launched a loan service to satisfy users’ funding requirements, requiring Binance users to pledge corresponding digital assets as collateral to borrow Binance loans.


What qualification does the user have to meet to borrow on Binance Loans?

As long as you are a registered user of Binance, you can borrow on Binance Loans.


What crypto can users borrow on Binance Loans?

Binance Loans supports the borrowing of several cryptos, including BUSD and USDT. You can check out the Borrow page on Binance Loans for more information.


What crypto can users use as collaterals?

Binance Loans supports the use of several cryptos as collateral, including BTC and ETH. You can check out the Borrow page on Binance Loans for more information.


How long are the Loans terms for Binance Loans?

Loans terms of 7, 14, 30, and 90 days are available. You can always repay in advance and the interest is calculated based on the days borrowed.


How is the interest calculated?

Interest is calculated daily, and less than one day is calculated as one day. The interest rate is determined by the date you make the Loans.


How do I repay the interest and principal?

You have to repay them manually on the Order page. The interest has to be repaid before the principal.


Is it possible to repay in advance?

Yes. There is no commission fee for repayment in advance. At the same time when the principal is returned, the interest will be charged according to the actual number of days.


What is LTV?

LTV is the value of your Loan Asset + Accumulated Interest to the value of your collateral. The price used here is Index Price. Different collateral coins have different initial LTVs, which means when you use different coins as collateral of the same value, the Loans you make are of a different value too.

At present, the LTV for BTC is 65% and the LTV for ETH is 55%. For the specific LTV, please refer to the loan page.


What is the margin call LTV and the liquidation LTV?

The digital currency market fluctuates violently and the risk factor is extremely high. To strictly control capital risks, we have set up an automatic warning and liquidation mechanism:

  • LTV = (loans + interest accrued) / collateral valuation * 100%;
  • When the LTV reaches 75%, we will notify you to add more collateral;
  • When the LTV reaches 83%, an automatic liquidation will be triggered.

Please carefully evaluate the risks and add more collateral in a timely manner to avoid accidental losses in extreme conditions.


What happens when my LTV is too high?

If your LTV is higher than margin call LTV, we will inform you to add more collateral or to repay your Loans. If your LTV is higher than liquidation LTV, we will liquidate your collateral to repay your Loans.


How can I adjust my collateral?

You can adjust your collateral on the Order page. You can always add more collateral and when your LTV is lower than initial LTV, you can remove some of your collateral too.


What happens if my Loans repayment is overdue

We give an overdue duration of 3 days (for loan term 7 days and 14 days) or 7 days (for loan term 30 days and 90 days), during which you will be charged 3 times the daily interest. If you do not repay after the overdue duration, we will liquidate your collateral to repay your loan.


Can I use the crypto I borrow to trade in Margin and Futures? Can I withdraw them?

Yes, you can trade on Binance using the Loans you make as long as you meet the qualification for using the services. Yes, you can withdraw them as well.

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Binance Loans User Manual