Income from other sources

Its Interest income.

1. Amount given as loan to a friend will be an acceptable transaction and interest income from the same will be taxable under the head Income from other sources. 
2. The above transaction is personal in nature and there is no restriction on the percentage on interest charged. 
3. With respect to interest earned on above loan, the same will be shown under "Interest Income" under Income from other sources. 
Please correct me if the above solution has an alternative view.