New Delhi, April 17 -- A dream car purchase is a major financial decision you must make with great consideration. Therefore, selecting the appropriate financing option is essential so that you do not get yourself into a heavier financial burden. While car loans are specifically designed for vehicle purchases, personal loans can also be used as an alternative.

A personal loan is a lump sum amount that can be used for a number of purposes, like a car, an unsecured loan. Personal loans are not secured on the vehicle so you have more flexibility in how the loan can be used. However, you must note that personal loans carry higher interest rates.

Subodh Kumar, General Manager-Retail Asset Division, Punjab National Bank, said: "A personal loan...