Binance Launches Lite Loan, Bitcoin-Backed Borrowing Product with No Price Liquidation for First 30 Days

Binance has launched Lite Loan, a bitcoin-backed borrowing product that allows users to borrow up to $1,000 in USDT without selling their BTC. The exchange is targeting customers with small, short-term liquidity needs who may find existing crypto lending products too complex or risky.

The product carries a one-time service fee rather than a standard interest charge during the initial loan period. Binance is offering a promotional fee of 0.5% until September 3, which will rise to 1% after the promotion ends.

Lite Loan removes price-based liquidation during the first 30 days, but the protection ends quickly. Borrowers who miss the repayment deadline face a 36% annualized rate and the risk that their bitcoin will be sold if the collateral ratio deteriorates.