Nwankpa Kelechi
4 min readNov 18, 2021



Have you ever found yourself in need of something you know will add value to you but with no way to get it? It can be really frustrating especially when you find yourself in such a helpless scenario without any solution.

Many traders who need crypto loans find themselves in such situations. Sometimes traders need loans to take advantage of a trading opportunity or to save a leverage trade close to being liquidated.

A solution to this problem is BINANCE CRYPTO LOANS.

What are Binance Crypto Loans?

A Binance Crypto Loan is a financial service that helps the users on the Binance platform to meet their short-term liquidity needs by providing them with crypto loans.

Why do we use Crypto loans?

Crypto loans can be used save leverage traders close to liquidation and require to add more margin to their positions.

It can also help traders with limited funds to add to their trading funds while using their HODL crypto as collateral.

Crypto loans can also serve as a needed source of liquidity for traders who are hodlers of crypto projects that do not want to sell, but still desire to trade and get a turnover.

Take for example:

A Binancian who HODL BTC needs a working loan to trade and earn a turnover but he only has 1BTC in his portfolio and doesn’t want to sell. What can he do? He can borrow a loan from Binance to trade and use his 1 BTC as collateral to take it back after repayment of the borrowed loan. Binance approves the loan for him on agreed terms, hence his need has been catered for.

How to use Crypto Loans.

Note that the borrowed Crypto loan can be used for any transaction, it can even be withdrawn if the user wants to use the crypto funds probably for a project outside Binance; as long as the loan is repaid on time.

The borrowed loans can be used for staking or other Binance Earn options. If the borrowed loan is liquidated, there is a 2% liquidation fee charged from the total borrowed amount.

Borrowed loans attracts a minimum hourly interest of 0.00000001BUSD based on the loan agreement and interest rate is 3x after loan repayment expiration time.

Borrowed loans are renewable if the previous loan is paid before expiration. Unpaid loans are overdue after 72 hours from expiration time and are closed for repayment.

How to Borrow loans?

Follow these steps:

§ Go to Home,

§ Click Finance (on Desktop) or Earn (on the App),

§ Click Crypto Loans (Borrow),

§ Select the asset you want to borrow and enter the amount,

§ Select the collateral asset and enter the collateral amount,

§ Choose a loan term from 7 to 180 days,

§ Next confirm the borrowable amount, collateral, interest, repayment, and click Start Borrowing Now,

§ Confirm all the information on the order confirmation pop-up that comes up,

§ Reading carefully and agree to the Binance Loans service agreement and click Confirm,

§ Once it is confirmed, the collateral is transferred from the spot account and the loan amount is received in spot account.

How to repay borrowed loans?

Follow these steps:

§ Go to Home,

§ Click Finance (on Desktop) or Earn (on the App),

§ Click Crypto Loans (Ongoing Loans),

§ Click Repay or Repay with collateral if you wish to repay loan with collateral,

§ Enter the repayment amount or select a repayment ratio,

§ Review the details to be correct and click confirm Repayment,

§ A repayment successfully processed confirmation message pops up.

Binance Crypto Loans can be repaid at any time before the expiration of the loan period or at the loan expiration period or within the 72 hours grace period after the expiration period. Once the loan is repaid, the collateral is received back into the spot account.

Do you have a crypto you HODL and would like to take advantage of a Binance crypto loan to earn passive income?

Here is how to get started with these simple steps:

First you would need to create a verified Binance account by clicking here, and then complete the KYC process.

If you already have a KYCed Binance account that you currently trade crypto with; simply go to https://www.binance.com/en/loan?ref=65177765 and follow the steps highlighted in this article to borrow a crypto loan and repay your borrowed loan on time.

The thoughts in this article are clearly my personal opinion and should not be viewed as financial advice.

If you need more details or an answer to any question you may have about using Binance Crypto loans; simply access the frequently asked questions via https://www.binance.com/en/support/faq/360041278132.



Nwankpa Kelechi

I am a crypto currency content creator and also a crypto trading training instructor. Feel free to reach me via email: kaycpompey@gmail.com.