Borrowing interest depends on three key factors: which coin you borrow, how the rate is calculated, and how long you hold the loan. The order page shows an estimated interest upfront—just confirm these details before placing your order.
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Step 1: Check the Real-Time Rate on the Borrowing Page
Find the current annual percentage rate (APR) or hourly rate for borrowing. Go to the Binance Borrow page, select the coin you want (e.g., USDT, BTC, ETH), and the page will display the corresponding APR and hourly rate. Rates vary significantly between coins—USDT APR is around 3.49%, BTC around 0.31%, and ETH around 1.87%. Completion check: you've seen the real-time rate for your chosen coin and know whether interest is charged hourly or daily.
Step 2: Understand the Interest Calculation Rules
Make sure you know when interest starts accruing and how often it's settled. Binance Borrow charges interest by the hour, settled at the top of each hour. Starting April 30, 2026, the first interest charge on new loans is calculated only for the actual seconds remaining until the next full hour, rather than a flat full hour.
For example: if you borrow 10,000 USDT at 05:30:49 with an hourly rate of 0.0004%, the first interest charge only covers the remaining time until 06:00:00, totaling about 0.0195 USDT. After that, a full hour's interest is settled at each subsequent hour (06:00, 07:00, 08:00…) until you repay.
VIP Loan flexible rates are charged hourly, while fixed-term rates are charged daily, with accumulated interest updated between 00:00–01:00 UTC each day. Completion check: you understand how the first charge is calculated and the ongoing settlement schedule.
Risk alert: If your loan is overdue, interest multiplies. Overdue VIP Loans incur 3x the daily interest rate. If a Lite Loan is not repaid within 30 days, a penalty rate of 36% APR applies after the due date. A 2% liquidation fee is also charged in the event of forced liquidation.
Step 3: Estimate the Total Interest Amount
Estimate how much total interest you'll pay over the borrowing period. Use this formula: first interest charge + subsequent hourly interest × number of hours held. First interest charge = principal × hourly rate × (actual seconds / 3600). For fixed-term products like Lite Loan, simply refer to the fixed service fee shown on the page (e.g., a one-time 1% fee for 30 days). Completion check: you've calculated a rough total interest amount based on your planned borrowing period.
Common Pitfalls
The most easily overlooked detail is that the first interest charge is not based on a full hour. Under the old rules, even borrowing for 1 minute cost a full hour's interest. The new rule only charges for the actual seconds until the next hour—many people still estimate based on old habits and overestimate. Another trap is only looking at the APR and ignoring the hourly rate—a 3.49% APR converts to roughly 0.000398% per hour. Borrowing for a single day costs less than 0.01%, but the longer you hold, the more it adds up.
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Next Steps
Confirm the interest rate for your chosen coin on the borrowing page before placing an order. If you have questions about the interest calculation, click "Rate Details" or "Interest Rules" on the Binance Borrow page to view the detailed formula. Once you've borrowed, repaying early saves on future interest, but the first interest charge already incurred is non-refundable.
