Interest Charge and Interest-Free Period

 Trading FAQs    |      2020-09-16
This interest charge is only subject to those who borrowed after 00:00:00 AM UTC on September 21st, 2020. No interest will be charged on existing borrowings before the date;
Users will enjoy different borrowing limits and daily interest rates at different VIP levels. Binance can adjust the Interest rate, Grace period, Borrow limit, LTV ratio (Initial LTV, Margin LTV, Liquidation call) from time to time without prior announcement, user needs to check the interest rate proactively via
Interest-free period
Each order of cross collateral loan will enjoy a 3-day interest-free period, starting from the day of borrowing, i.e. the first 3 UTC+0 natural days of the borrowing are interest-free (including the day of borrowing).
Interest Charge
After the interest-free period, VIP 0 for example, a daily interest rate will be charged at 0.24%, and the interest is calculated once a day at 00:00 UTC+0.
The system will update the accumulated interest of each order according to the formula (remaining loan amount* the latest interest rate), and refresh the LTV at the same time.
The calculation method is: Borrowing time dd+N 00:00 UTC+0.
Example 1: User borrowing time = 2020-07-01 00:00:00 UTC, interest-free period = 3 days, will start to record user’s interest at 2020-07-04 00:00:00 UTC.
Example 2: User borrowing time = 2020-07-01 07:02:55 UTC, interest-free period = 3 days, will start to record user’s interest at 2020-07-04 00:00:00 UTC.
Example 3: User borrowing time=2020-07-01 07:02:55 UTC, Principal=500USDT, interest-free period=3 days. The user repays 200USDT on 2020-07-03 23:00:00 UTC, will start to record user’s interest based on 300USDT at 2020-07-04 00:00:00 UTC.

Interest history

You can go to "Futures Order", then click on "Interest history" tab to view interest history. This page updates at 00:00 UTC+0 every day according to the amount of your loan amount.
How to repay interests
When you make a repayment, interest will always be repaid before any principal, according to the order time it is generated i.e. the first order is paid first; once all interests have been repaid in full, you will then start repaying principal, the LTV will be refreshed at completion.
For details about how to replay a loan and ways to repay, please view below help pages:
  1. How to Repay a Loan
  2. Repay with Collateral