Binance #loans can be very useful if used smartly, but come with real risks.
how to calculate interest on a Binance loan —
➡️Interest= Loan Amount × Hourly Interest Rate × Hours Borrowed
*Loan Amount – How much you borrowed
*Hourly Interest Rate – Usually displayed on Binance when you take the loan (e.g. 0.00011%/hour)
*Time Borrowed – In hours (Binance charges hourly)
Example:
You borrowed 100 USDT
Hourly interest rate = 0.00011
☑️Borrowed for 24 hours
Interest=100×0.00011×24=0.264 USDT]
☑️Borrowed for 7days
100×0.00011×168=1.848 USDT
Binance often has a minimum borrowing time (e.g., 1 hour)
◆You can repay early to save on interest
◆Interest accumulates hourly, even if not a full day
◆The exact interest rate depends on the token you borrow
➡️Advantages of Binance Loans
◆Instant Access to Funds
-Borrow stablecoins (like $USDT , BUSD) or other crypto using your existing crypto as collateral.
◆No Credit Check
-Everything is based on your collateral, not your credit score.
◆Flexible Terms
-Choose from 7, 14, 30, 90, or even 180-day terms. You can repay early to save interest.
◆Low Interest (Sometimes)
-Interest is charged hourly, so if you repay quickly, it’s cheaper.
◆Use Cases
-Great for short-term trades, liquidity, or avoiding taxable events by not selling your crypto.
➡️Risks / Things to Watch Out For
◆Liquidation Risk
-If your collateral drops in value and your LTV gets too high, Binance can liquidate your assets (auto-sell them) to recover the loan.
◆Interest Accumulates Hourly
-Forgetting to repay = surprise cost.
◆Locked Collateral
-You can’t use or trade your collateral until the loan is fully repaid.
◆Market Volatility = Danger
-Big market dips can liquidate you fast if you don’t manage your LTV well.
To explore Binance Loans, you can visit the official Binance Loans page:
https://www.binance.com/en/loan
Have a nice day❣️
