This is a strange thing to see because this is not a new concept. The issues with Bitcoin loans were of risk of the company that is being used, which is eliminated here if it is offered by Binance. The other main issues were high interest rates compared to traditional loan, often it was more than 10%. And lastly that the loan to value was often quite low, sometimes even 50%. So until competition improves the offering of Bitcoin loans, I do not see them as a good option at this time. But see if you read from the website:
These are 30 day loan, so to simulate a one year loan with interest rate you would lose 6% in service fees which you could consider similar to interest. So while it is an improvement compared to the competitors and the offer is a bit different, it is still not that great.

Loans are not compared to holding. Loans which are made with Bitcoin collateral are compared to selling, and they are better than selling if the terms are good.

Binance is one of the good and reputable players in the space, it is not needed to cast bad doubt on them.

When you hold it, you get to keep the bitcoin. But loans =! holding.

Someone who's desperately in need of cash and only has bitcoin remaining as his personal savings, the only way to solve that problem is to either sell it and with this option, to borrow against it and use it as a collateral.

Just get the idea of the typical banks loaning people and the interest rates they give, there's more to what is actually shown for the numbers and its interest.

You're giving yourself two problems when you do that, you pay the interest and then make them hold your BTC.

If this ad was posted on my country board I would have advised anyone willing to try it out due to desperation could first try out loan apps and face the charges square on, because I don't believe anything offered for free is actually free mostly on an exchange.
Centralized exchanges are in the business for profit making and would do so both to attract new customers and have possession of old customers coins if they falter on the TOS.
The ad also didn't make mention of what might be the case Incase of a market crash or when someone misses the deadline because that should be enough reason to put into the equation when considering such an offer.

Bitcoin is liquid, market open 24/7 and honestly i'm more surprised that there's still not more bitcoin backed collateral loans.

Volatility is no excuse because securities-backed loans exist and they're just as volatile if not more.

But if you actually want bitcoin backed collateral loan this isn't interesting offer, the charge 0.5% on principal while Bybit loan with hourly interest charge nothing.

The 30-day no price trigger liquidation is interesting only if you are those kind of people maxed out initial LTV.

The offer is not that great.

Lite Loan  
$1,000 is a very big fund with many people, not a lite fund.

Sounds good but there are hidden risks.

Even funding your exchange accounts with bitcoin is risky after you broadcasting the deposit transaction. After it is confirmed, at least one confirmation, bitcoin sent to the exchange wallet, and you already lost control of it. Then there is risk of losing your bitcoin forever because you will never control what will happen with that exchange and how they treat users including you.

Reminder: do not keep your money in online accounts.

It's helpful for people who are ready to take risk, and need extra money to use for something. Surely with such people, they need loans, and they will find as best loan offers as possible.

With careful people, who consider their bitcoin safety, financial safety first, will control themselves, reduce needs, and avoid making loans with any collateral from bitcoin to real estates.

That's not promotional fee, that's an upfront fee and it's the service fee.

You haven't even got the entire loan and you're already deducted with that. It's likely the processing fee that the banks also offer.

Someone who's going to apply and be qualified for it, 40% of your collateral is what you're most likely going to get.


Is it really lite? maybe for those who are in need of exact $1k if they have more than that valuation in BTC but that's business. Others might have missed one important detail, maximum of $1K USDT only.

Say you took the loan and eligible for the max cap of $1k.

$5(0.5%) was already deducted just for the processing(service) fee.

I would rather sell my bitcoin to have cash for emergency than make a loan despite of any loan interest I will have to pay. Because making a loan will cost me extra money, and a bigger risk is losing my collateral (bitcoin in this discussion).

Especially if the cash amount I need does not require me to sell all my bitcoin, I feel it's comfortable to sell a part of my bitcoin fund for cash and emergency, because I can work and earn cash later, then use cash to buy bitcoin again.

I would like to have a safer approach for my finance, avoid extra cost, while I always can buy bitcoin again after resolving my emergency situation.

The exchange is not there to help anyone. It is a business that is made to make money for its owners and offering loans to gamblers (those who trade altcoins and tokens on a highly risky centralized exchange) is one of the easiest way they can make more money without risking anything themselves! It's a win-win situation for them since if the gambler fails to pay back, they win big by taking all their collateral which was bigger than the loan amount and if the gambler does pay back they still win since they are still getting the lent money back + interest.

For those who really need a money I guess they are willing to let go their bitcoin well this could depends on the person how they will use the money of course. If you will use the money for a good day such as help you to avoid getting suffer and at least you know to yourself that you have the capability to pay there is nothing wrong with that but if not imagine you got a good position of your bitcoins and ended up losing because you cant pay your loan. In this type of collateral for sure they will lock your bitcoin until the maturity date or even fully paid so still you cant hold your bitcoin you need to deposit that into their platform.