Binance has rolled out fixed-rate loans accessible in USDC and FDUSD stablecoins, ensuring stability in borrowing expenses. The fixed rate for USDC loans is 7.8%, while for FDUSD, it stands at 11%, with a minimum borrowing threshold of 50,000 for both. Borrowers must settle the full loan amount before the due date to evade late fees, while providers enjoy asset protection.

Binance has unveiled a new fixed-rate loan opportunity for stablecoin users, heightening financial predictability for those interested in crypto loans. This feature enables borrowers to secure fixed interest rates for the loan tenure, ensuring steadiness in borrowing costs. Presently, Binance offers this option for USDC and FDUSD stablecoins.

To utilize this service, borrowers must place an order via the Binance platform, electing eligible assets as collateral. After the order is matched, borrowed funds are transferred to the user’s Spot Wallet, following the deduction of pre-calculated interest. Repaying the full loan amount prior to the due date is crucial to avoid late fees.

Additionally, fund providers have their assets safeguarded by Binance once their order is matched. The provided assets, along with accumulated interest, are returned to the provider at the end of the loan term. The loans are managed in an over-collateralized manner, minimizing liquidation risks. Binance also offers auto-repay and auto-renew options to streamline the process for users.

The implementation of fixed-rate loans aligns with Binance’s objective of providing stable and predictable options in the market. This new feature offers enhanced predictability for borrowers and presents a dependable choice alongside a fitting system.