Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has launched a new service dubbed Binance Loan to expand its lending business and attract more crypto borrowers.
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The crypto trading house said in an announcement on Tuesday that early birds will receive a 20 percent discount on the standard daily interest rate, with the lowest rate being 0.0224%.
Registered users on binance are qualified to borrow through binance loan service that cover several cryptos, including BUSD and USDT.
Binance Loan service also supports several coins as collateral, including BTC and ETH. There are different length in periods set aside for each loan with a corresponding terms, ranging from 7 to 90 days.
Moreover, borrowers have an overdue duration of 3 days, during which binance charges three times the regular interest. However, any borrower who fails to repay the borrowed loan within the grace period will see his collaterals liquidated to pay off crypto debts.
Just a few days ago, binance launched binance cards to allow cryptocurrency users enjoy spending with crypto using the POS service from merchant’s shop around.
Following this new development, binance has expanded it’s binance lending service, competing with top crypto loan providers like Nexo.