Latest Car Loan Interest Rates at Banks (May 2025 Update)

Which bank offers the simplest procedures, best car loan interest rates, and fastest disbursement? Discover essential tips for installment car loans now!

When planning to buy a new car, understanding your financing options is crucial to ensure financial feasibility. Among these, car loan interest rates at banks are a key factor influencing a borrower's decision. To provide you with a clearer overview of lending conditions in 2025, this article will update the latest information on car loan interest rates across various banks. Read on with VPBank to choose the most suitable financial plan for your car ownership goals!

1. Car Loan Interest Rates at Banks in May 2025

Current car loan interest rates at banks are stable and trending lower than in previous years. This is largely due to banks being able to mobilize savings deposits at reduced rates.

Currently, car loan interest rates generally range from 4% to 9% per annum, depending on the loan term and specific promotional programs offered by each bank. This is notably lower compared to the 2018-2020 period, when rates could fluctuate from 7% to 11% per annum, reflecting banks' efforts to create loan packages that align with borrowers' needs and financial capacities.

 Car loan interest rates range from approximately 4% to 9% per year.

Below is some information on car loan interest rates from banks, updated as of May 2025. Please note that this information is for reference only; we recommend contacting the banks directly for more detailed and precise advice. For more information on VPBank's car loan interest rates, please call our hotline: 1900545415 or visit: Car Loans.

Car Loan Interest Rates for State-Owned Commercial Banks

(Source: Compiled from Internet)

Car Loan Interest Rates for Private Commercial Banks

(Source: Compiled from Internet)

2. Factors Affecting Auto Loan Interest Rates

Several factors influence the interest rates for auto loans:

• Bank Policies (Vary by Period): Each bank adjusts its interest rates based on its business strategy and the current financial market situation.

• Customer Credit Score: Individuals with good credit scores typically receive more favorable interest rates due to lower perceived risk for the bank.

• Down Payment Amount: A larger down payment reduces the loan amount, lowers the bank's risk, and can lead to a lower applicable interest rate.

• Loan Term: Longer loan terms generally have higher interest rates but result in lower monthly principal repayment pressure. Shorter terms might have lower rates but higher monthly payments.

• Interest Rate Type: Rates can be fixed (unchanging for an initial period) or floating (fluctuating with market conditions).

• Lending Institution: Banks and financial companies may apply different interest rates due to their distinct mechanisms and policies.

 

There are many factors that affect the interest rate on car mortgage loans.

In summary, auto loan interest rates depend on bank policies, the borrower's creditworthiness and financial capability, the down payment amount, the loan term, and the chosen interest rate type. Borrowers should thoroughly compare terms and regularly update their interest rate information to select the most suitable and cost-effective loan.

3. Tips for Securing the Lowest Car Loan Interest Rates

Auto loans are typically high-value commitments requiring long repayment periods. The long-term nature of car loan interest rates can make many hesitant or struggling to choose. This is why everyone seeks to borrow for car purchases at the most preferential and stable rates.

To secure the most favorable loan, VPBank's financial experts recommend the following:

• Purchase from a Dealership that is a Bank Partner: Some banks have partnership programs with car dealerships. Through these programs, customers may receive more incentives than when purchasing from other dealerships, such as higher credit limits, lower car loan interest rates, and longer loan terms.

Choosing the right car dealership allows you to receive special offers from both the dealership and the bank.

• Check the Interest Rate Margin After the Preferential Period: Some people only focus on the initial interest rate, but this rate is usually not fixed and only applies for a specific period (e.g., 6-12 months). After this period, the car loan interest rate will fluctuate according to State Bank of Vietnam regulations and the interest rate margin specified in the contract. You should choose a lender with a lower interest rate margin for greater cost efficiency over the long term.
• Loan Approval Time: An installment car loan from a bank is often a high-value credit agreement, so the procedures and process tend to be rigorous. The appraisal process can be lengthy, potentially causing you to miss out on your desired car. Therefore, choose a reputable bank with the fastest possible loan approval time.
• Borrow from Reputable Banks: Choosing a reputable bank improves your chances of accessing better loan terms regarding the loan amount, interest rate, interest rate margin, loan term, and overall loan policy. Borrowers typically choose well-known banks like VPBank for this type of financing.

See more: What is car physical damage insurance? Useful tips when purchasing it

4. Guide to Applying for a Low-Interest Car Loan at VPBank

VPBank (Vietnam Prosperity Joint-Stock Commercial Bank) is recognized as one of Vietnam's leading credit support institutions. We have disbursed millions of loans, notably for installment car purchases. With rigorous yet efficient procedures, excellent car loan interest rates, and swift advisory, appraisal, and disbursement services, VPBank has become a trusted choice for many seeking car loans.

Car loans are a popular product at VPBank.

4.1. Conditions

VPBank offers installment car loans to customers who meet the following requirements:

• Vietnamese citizen, aged 18-65.

• Demonstrates sufficient income to ensure repayment capability.

• Possesses a minimum capital of 15% of the desired car's value.

• No bad debt in credit history.

The borrower can use the car being purchased or other suitable assets as collateral.

Điều kiện vay mua xe ô tô của VPBank khá linh hoạt nên được nhiều người lựa chọn

VPBank's loan conditions are designed to be flexible for customers, not requiring an excessively large down payment and accepting income from various sources, while still adhering to the State Bank of Vietnam's credit regulations. Additionally, VPBank may offer specific preferential policies for car loan customers at different times; please contact our hotline 1900.54.54.15 for detailed support.

4.2. Loan Limit and Interest Rates

VPBank offers car loans with a credit limit of up to 85% of the car's value, and preferential interest rates starting from just 7% per annum. Notably, the actual car loan interest rate varies depending on: the State Bank of Vietnam's interest rate policies, the borrower's credit score, the loan amount, the loan term, and VPBank's specific promotional policies at the time. While each individual's rate may differ, most customers find VPBank's interest rates to be among the best in the market.

4.3. Loan Term

Depending on your needs and proposed repayment plan, VPBank will assess and offer a suitable loan term. This term can extend up to 96 months (8 years) for new cars and 84 months (7 years) for used cars.

VPBank's loan terms are considered more favorable and flexible than many other commercial banks in the market, where most systems typically offer a maximum loan period of 5-7 years for car loans.

4.4. Loan Term

VPBank requires borrowers to prepare the following documents for a car loan application:

• Loan application form from VPBank

• Valid ID card/Citizen ID (CMT/CCCD)

• Household registration book

• Marriage certificate or Certificate of marital status

• Car purchase agreement

• Proof of income documents

4.5. Loan Application Process

• Step 1: Access https://vaythechap.VPBank.com.vn/vay-mua-o-to

• Step 2: Fill in your basic personal information: Full name, Phone number, current address, Email.

Các thông tin cơ bản cần điền để vay mua xe ô tô trả góp tại VPBank

• Step 3: Provide loan details: select collateral type (house/land/car), indicate whether you need branch support. Then click "Register."

• Step 4: Receive consultation from a VPBank Relationship Manager and follow their instructions.

• Step 5: Await appraisal and direct disbursement to the car dealership's account.

In practice, the time for consultation and disbursement is very quick. Loan appraisal and approval typically take about 5 minutes, meeting customers' immediate car purchase needs.

You may be interested in:

• Learn about loan products suitable for business purposes

• Car physical damage insurance: Useful tips and important notes when purchasing

• What are the requirements for a home mortgage loan? What is the procedure?

• Latest home loan interest rates from banks – Which bank offers the best rates?

You've just explored car loans and related information with VPBank. If you want to receive financial support with the best car loan interest rates on the market and fast disbursement, contact VPBank (Vietnam Prosperity Joint-Stock Commercial Bank) via our hotline 1900.54.54.15 or visit vpbank.com.vn and leave your personal information. You'll own your desired car in the shortest time possible!