New Delhi, May 9 -- Purchasing a car is a major financial and aspirational milestone for many Indians, and it can be exciting and stressful at the same time. Overall, the loan you choose must balance affordability and risk while keeping your financial health in good shape.

When it comes to tax benefit, a key distinction between home loan and car loan is that the former allows you deductions for personal and business use, while the latter can only be claimed for business use in India.

Car loan for a vehicle purchased by a self-employed individual or business owner and reported as a business expense is eligible for tax relief. Further, benefit for car loan may not be available for all salaried individuals, unless they can prove the purcha...