The Indian automobile industry is catching up at a great pace keeping in mind the future of mobility through the electric cars. To ease the one-time payment of an EV, VinFast Auto India has tied up with the State Bank of India (SBI) to provide competitive and flexible car loans. Meanwhile, the rates of the car loans are being adjusted by the public sector banks and other privately owned banks in India and car buyers stand to get more affordable car loans.
VinFast Joins Hands with SBI for EV Financing
MoU for Customer-Friendly Loans
On August 22, 2025, VinFast Auto India signed an agreement with SBI to provide retail financing for its upcoming EVs, including the VF 6 and VF 7 models.
Key Benefits of the Partnership
- Attractive and competitive car loan interest rates.
- Up to 100% financing on the on-road price.
- Flexible repayment tenures.
- Priority processing and quick loan approvals.
- Dedicated SBI support staff at VinFast dealerships.
The partnership uses SBI which has a huge network of 23,000+ branches throughout India to make VinFast EV financing services conveniently available to the customer. It is also in line with the SBI emphasis on green financing with its target of allocating 7.5 percent of its lending business on sustainable projects by 2030.
Car Loan Interest Rates in India (2025 Update)
The Indian banking sector is offering some of the most competitive rates for car loans. Let’s look at the latest numbers:
Best Car Loan Rates – August 2025
- UCO Bank – beginning with 7.60 percent per annum.
- punjab National Bank (PNB) -approximately 7.80% p.a.
- Union Bank of India: the approximate rate is 7.90 percent per annum.
- Canara Bank, Bank of Maharashtra and the Indian Bank- below 8 percent p.a.
- SBI (general car loans) -about 9% p.a., but the VinFast-SBV loans are likely to have improved rate structures.
- HDFC, ICICI, Axis etc. – usually in the range 9% to 9.4 percent p.a.
Read Also: Maharashtra Makes Atal Setu Toll-Free for Electric Vehicles: A Big Push Towards Green Mobility
Recent Rate Cuts by Indian Banks
RBI Policy Impact
Following the RBI’s August 2025 MPC meeting, several banks lowered their lending benchmarks, leading to potential savings for car buyers.
- Bank of Maharashtra: Reduced retail loan rates by up to 50 basis points.
- Bank of Baroda & Canara Bank: Lowered MCLR by 5 basis points.
- HDFC Bank: Adjusted its MCLR, reducing EMIs for borrowers.
These adjustments make it an ideal time to apply for a car loan, especially for those considering EV financing through partnerships like VinFast–SBI.
Why This Matters for Car Buyers
EV Buyers Benefit from Easy Financing
With VinFast’s entry into the Indian EV market, the SBI partnership ensures smooth financing with attractive features—making EV ownership more affordable and hassle-free.
Car Loan Buyers Save More
Borrowers looking at traditional fuel cars also benefit, as PSU banks now offer sub-8% rates, some of the lowest in recent years. This is especially useful for budget-conscious buyers.
Read Also: Smart Ways to Reduce Car Insurance Costs in 2025
Conclusion
The VinFastSBI partnership constitutes a significant drive towards cleaner mobility in India by providing attractive EV loans all over the country. Simultaneously, car buyers can enjoy competitive interest rates on car loans which has been reduced by various banks following the RBI’s policy review; with interest rates available as low as 7.60% p.a.
It does not matter whether you are purchasing a petrol vehicle, a diesel one, or even electric car, it is a good time to review your loaning options and get a good deal that suits your financial plan.
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