Interest income as business income

Hi,

If one takes a loan(let say LAP, OD, Personal etc) from a bank and give it further to someone on interest.

1. Can he show that income (Int Inc. - Bank Loan Interest) as a business income and file the tax.

2. Can he deduct the bank interest as the expense and file tax on the nett income.

3. Is it required to open a firm or a company for this ?

4. Is it required to register with RBI or any other organization?

5. IS it required to take any kind of registration number?

6. Is there any other formalities for this?

Any one interest in giving loan @ 6%-15% from 1L to any amount, please contact.