Banks lend to attract car buyers, 0% interest rates, sky-high interest rates

Since April, VPBank has been working with a car company to launch a preferential interest rate program. The interest rate is 8.8%/year fixed for 12 months. The bank lends up to 85% of the car's value, customers only need to pay 15% in advance. The remaining amount is paid within 8 years.

This interest rate is considered financially stable and preferential compared to the general interest rate level of the market. However, the program is only applied to car models manufactured from 2022 and lasts until the end of May 2023.

Sacombank applies an interest rate of 8.5%/year for customers borrowing to buy cars under the program implemented from the beginning of the year and ending on June 30. Individual customers can even borrow up to 100% of the car's value. The loan period can last up to 10 years.

Sacombank said that this program responds to the policy of reducing loan interest rates to help customers quickly access preferential capital sources, meeting people's need to own cars.

At BaoViet Bank, since March, this bank has launched a car loan program for corporate customers. Customers can choose an interest rate of 10%/year for the first 3 months, or 10.5%/year for the first 6 months.

BaoViet Bank also lends up to 85% of the vehicle value. The loan term is up to 60 months if the collateral is the purchased vehicle. The program lasts until December 31.

In April, Vietcombank and its distributors launched a car loan program with interest rates starting from 0%. Individual customers who borrow to buy a Hyundai Stargaze will enjoy a 0% interest rate per year for the first 12 months. For Tucson and Santa Fe, the interest rate is 3.99% per year. The remaining car models have a loan interest rate of 9.5% per year. However, the program only applies in April 2023.

According to a survey, banks currently lend money to buy cars at a common interest rate of 11-13%/year. PVCombank even has a lending interest rate of up to 14.6%/year from the 7th month of the loan onwards. The maximum loan limit is 80% of the car's value and is paid within 6 years.

According to the Vietnam Automobile Manufacturers Association (VAMA), total market sales as of the end of April 2023 decreased by 30% compared to the same period in 2022, reaching 92,801 vehicles. Passenger cars decreased by 35%; commercial vehicles decreased by 9% and specialized vehicles decreased by 58% compared to 2022.

However, the demand for car ownership among Vietnamese people is still very high. According to the Ministry of Industry and Trade, the car ownership rate in Vietnam is about 23 cars/1,000 people and the trend of carization will take place strongly in the coming time. This is the basis for banks to accelerate car loans in recent times with many incentive programs for car buyers.

Real estate and securities business loans increased sharply ; savings interest rates continued to decrease; state budget revenue reached 39.8% of the estimate; electricity prices increased... are notable economic news last week.

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