Binance launches a new service allowing users to lock in a fixed Annual Percentage Rate (APR) for the entire duration of their loan. This ensures a smooth and straightforward financial experience for both borrowers and suppliers.
Fixed Rate Loans for Stable Trading
For those looking to borrow, the process begins by placing an order. Users can start by selecting 'I want to Borrow' or clicking 'Borrow' next to their preferred order in the Borrow Market. After placing the order, borrowers must set collateral from their Spot Wallet to meet the LTV ratio.
Loan Acquisition Process
Once the collateral is set, users review and confirm the order details along with the Terms & Conditions. After confirmation, the order is matched, and the borrowed funds, minus interest, are transferred to the borrower's Spot Wallet. Borrowers can monitor the status of their order under the 'Ongoing Order' section in 'My Order.'
Terms for Fund Suppliers
Supplying funds with Fixed Rate Loans is equally straightforward. Suppliers start by placing an order through the 'I want to Supply' option or by clicking 'Supply' next to a preferred order in the Supply Market. After setting up the supply order, they confirm the details and Terms & Conditions. Once the order is matched, the supplied funds are transferred from the Spot Wallet and are protected by Binance for the duration of the loan.
Interest on the return begins to accrue as soon as the order is matched. Suppliers can track their order status in the 'Ongoing Order' section of 'My Order.' After the loan period expires, Binance returns the loaned assets and accrued interest to the Spot Wallet within 24 hours.
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