Detailed Analysis
If you're financing a car purchase, both car loans and personal loans can work, but car loans are almost always better.
Car loans are secured against the vehicle, giving lenders lower risk and allowing them to offer 7.5-11% rates — significantly cheaper than personal loans. Tenure up to 7 years means lower EMIs. The car is hypothecated to the bank until loan closure.
Personal loans offer freedom — the money goes to your account, and you can use it for any purpose. This is useful for buying second-hand cars from individuals or if you need the loan for additional expenses beyond the car price.