The "simple" part of Lite Loan only lasts for 30 days. During those 30 days, BTC price movements will not trigger liquidation, your collateral continues to earn interest in Simple Earn, and you can freely use the USDT you receive. After the 30-day period ends, the rules change: the unpaid balance starts to accrue penalty interest at a 36% simple annual rate, an LTV of 85% triggers a margin call reminder, and an LTV of 91% or 30 days past due triggers liquidation, whichever comes first.
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Check How Your Borrowing Limit Is Calculated Before Borrowing
Lite Loan only accepts BTC as collateral, and you can only borrow USDT. The maximum limit for each user is 1,000 USDT.
The actual amount you can borrow is not based on the total market value of your BTC, but is calculated using the collateral ratio. The example logic on the product page is: assuming a collateral ratio of 40%, if you hold BTC worth 6,000 USDT, your borrowing limit = 6,000 × 40% = 2,400 USDT, but it will be capped by the 1,000 USDT limit, so you can only borrow 1,000 USDT in the end. If your BTC is only worth 2,000 USDT, your borrowing limit is 800 USDT, which does not exceed the cap.
This means your borrowing limit hits the ceiling when your collateral value reaches 2,500 USDT. Any BTC beyond that amount will not increase the USDT you can borrow, but will only improve your position's safety buffer.
Fees: One-Time Service Fee, Non-Refundable Even for Early Repayment
Lite Loan does not charge interest, but it charges a upfront service fee, which is deducted directly from the borrowed amount. The standard rate is 1%; during the promotional period, the rate is reduced to 0.5%, and the promotional period is currently extended until October 4, 2026, 23:59 (UTC).
If you borrow 100 USDT, a 0.5% fee will deduct 0.5 USDT, so you will actually receive 99.5 USDT; a 1% fee will deduct 1 USDT, so you will receive 99 USDT.
This service fee is non-refundable, even if you repay early. If you repay 5 minutes after borrowing, the service fee will not be returned.
How to Borrow: Web and App Paths
Web: Go to the Lite Loan page, click Borrow Now, enter the borrowing amount, confirm you have enough BTC collateral in your account, click Next, read and agree to the terms, then click Confirm. Funds will arrive instantly.
App: Search for Loans in the search bar on the home page, or tap More and find Lite Loan under the Loans category. Tap Borrow Now, enter the amount, confirm sufficient collateral, tap Continue, agree to the terms, then tap Confirm.
Where Will Your Collateral Be Locked?
The BTC you use as collateral will be automatically transferred from your Spot or Funding Wallet to Simple Earn Flexible Products and will continue to generate yield during the loan period. However, the collateral cannot be withdrawn or transferred out until the loan is repaid.
After you repay the loan, the collateral will be returned to your Earn account. The Simple Earn yield you see during the loan period is compensation for your collateral being locked.
Repayment: Partial Repayment Allowed, Can Repay with Other Assets
Lite Loan supports early repayment and partial repayment without any additional fees. You can repay using the borrowed USDT or other supported crypto assets.
The effect of partial repayment is to lower your LTV. If you notice your LTV is approaching the 85% margin call line, repaying part of the loan can bring the ratio back down.
What Happens After 30 Days?
The unpaid portion after maturity enters an overdue state. During the overdue period:
Penalty interest accrues daily at a 36% simple annual rate, calculated based on the unpaid balance.
LTV reaches 85%: You will receive a margin call reminder, notifying you that you are approaching the liquidation threshold.
LTV reaches 91%, or the loan is 30 days past due (whichever comes first): Liquidation will be triggered. During liquidation, the entire loan will be repaid in one lump sum using the corresponding collateral. The current liquidation fee is 0%, but Binance reserves the right to restore it to the standard 2%.
After the 30-day "no price liquidation protection" period ends, you will face price liquidation + overdue liquidation taking effect simultaneously. A drop in BTC price will increase your LTV toward 91%, while the passage of time will push your overdue days toward 30. Whichever line is crossed first will trigger liquidation.
Is It Suitable for You?
If you have a clear short-term funding need within 30 days (for example, you need USDT to participate in an event or pay a fee) and can repay before maturity, Lite Loan's structure is very straightforward: a one-time fixed fee, no daily compounding interest anxiety, and your BTC is still earning Simple Earn yield for you.
If you are unsure whether you can repay within 30 days, or plan to "borrow first and figure it out later," you need to think carefully. After becoming overdue, the 36% annualized penalty interest accumulates daily, while both price liquidation and overdue liquidation lines begin to take effect. If BTC drops by more than 9% within the 30-day window (starting from a full collateral ratio), your LTV will approach the 91% liquidation line.
If you need to borrow more than 1,000 USDT, Lite Loan's limit is not enough, and you will need to look at Binance's other lending products.
If you do not want your BTC to be locked in Earn and unable to move, this product is also not suitable. The collateral cannot be transferred out during the loan period, so you lose flexibility in handling that portion of BTC.
The world's largest cryptocurrency exchange by trading volume,leading in security and liquidity.
New user benefit: Enjoy 20% off trading fees upon registration!
References
- Binance · Binance Lite Loan Product Introduction Blog, page does not indicate update date; verification date: page does not indicate verification date.
- Binance Help Center · Lite Loan FAQ, page does not indicate update date; verification date: page does not indicate verification date.
- Binance · Lite Loan Official Product Page, page does not indicate update date; verification date: page does not indicate verification date.
- Binance Announcement · Lite Loan Promotional Rate Adjustment Announcement, page does not indicate update date; verification date: page does not indicate verification date.
- Binance Announcement · Lite Loan Product Launch Announcement, page does not indicate update date; verification date: page does not indicate verification date.
- Binance Square · Lite Loan 0.5% Promotional Service Fee Launch Announcement, page does not indicate update date; verification date: page does not indicate verification date.
- Binance ME Announcement · Lite Loan Product Rules Explanation Announcement, page does not indicate update date; verification date: page does not indicate verification date.
