Binance has unveiled its latest financial product, Fixed Rate Loans, providing users a new avenue for stablecoin borrowing and lending with the added benefit of predictable rates. This innovative service offers fixed-term loans with a custom APR that remains unchanged for the entire loan duration, creating a transparent and user-friendly experience.
This new feature aims to foster a stable financial environment by allowing users to personalize their interest rates and providing predictable costs and returns, particularly for stablecoins. The platform effectively connects the needs of suppliers and borrowers. Fixed Rate Loans are over-collateralized, supporting multiple assets as collateral to reduce liquidation risk. Additionally, the platform offers an efficient automated process with auto-repay and auto-renew options. Managed by Binance, the service ensures a smooth and secure experience.
Borrowers should note that their collateral assets will be frozen upon placing a Borrow Order and Loan Interest is charged upfront, with no refunds for early repayment. They must also actively monitor their Loan-to-Value (LTV) ratio to avoid liquidation. Late repayments will incur additional fees.
For Suppliers, their corresponding supply assets will be frozen once a Supply Order is placed. They cannot redeem loaned assets before the expiry date or request earlier repayment. Interest accrues only after the order is matched, and accrued return interest and supplied assets are returned within 24 hours after the Expiry Date.
