I wonder how this loan will help miners while they are losing on this bear market and having a loan will just give them more loss in the long run due to the interest rate since we don’t know exactly when will this bear market stop. Binance surely is a greedy loan shark for giving that huge interest rate on crypto sector that heavily affected by the price dump of Bitcoin. Increasing mining rig using this loan money doesn’t make sense because it will just increase the potential loss for miners.
The loan can help to sustain the business temporarily assuming that Bitcoin will recover soon enough so that company who took the loan can pay the interest and capital. But if the bear market prolong, this loan can be the trigger of death of companies that took the bait.
I also think that this loan offer of Binance is like a wolf in sheep's skin, ready to take advantage of the mining company that has difficulty in maintenance. Anyway, the 5%-10% interest isn't clear whether it is an annual interest or semi-annual since the terms is 18-24 months. Does anyone has information regarding the duration of this interest charges?