Yes u have absolute liberty to conduct ur business and ur life in the way u like. for taxation one thing has to be kept in mind that u should not be claiming unecessary expenses which are not allocatable for ur business earnings. if u have taken a loan from bank on interest and u further lend the same money to ur brother for no interest. then u arebineligible to claim that bank interest expense against ur business profits.
if u r lending out of ur personal capital then apparently there isnt any issue