Binance launches Bitcoin-backed Lite Loan on Aug. 4 with up to 1,000 USDT

Binance has launched Lite Loan, a bitcoin-backed borrowing product that allows eligible master-account users to obtain up to 1,000 USDT immediately against pledged bitcoin for a fixed 30-day term. The exchange said borrowed funds can be used both on and off the Binance platform, while eligible bitcoin from a user’s Spot or Funding Account is locked as collateral and placed into Binance Simple Earn so it can continue generating yield during the loan term. Lite Loan charges a nonrefundable service fee deducted upfront rather than recurring interest during the initial 30 days, with a promotional 0.5% rate for orders completed from Aug. 4 at 10:00 UTC through Sept. 3 at 09:59 UTC before reverting to 1%. The structure is designed to give borrowers short-term liquidity without requiring active loan-to-value monitoring during the first month or exposing them to price-triggered liquidation in that period. After expiration, however, Binance applies daily penalty interest at a fixed simple annual rate of 36% to the outstanding balance. The exchange sends a margin-call notification at an 85% loan-to-value ratio and begins liquidation at 91% or after the balance remains overdue for 30 days, whichever comes first. Liquidation uses collateral to repay the full loan, with Binance currently setting the liquidation fee at 0%, though it said the standard 2% fee may be restored and risk-based valuation adjustments may be applied. Early and partial repayments are allowed without extra charges using USDT or other eligible crypto assets. Lite Loan expands Binance Loans alongside flexible-rate, fixed-rate and VIP products, adding a simplified option for smaller bitcoin-backed borrowing. The move comes as major exchanges broaden crypto-backed credit offerings. Coinbase offers bitcoin-backed USDC loans with flexible repayment, with borrowing limits that vary by asset and pledged collateral.