Is it better to take Loans from Banks or from private individuals?

It is always better to take loans from bank as they are regulated entities and RBI ensure lot of transparency which helps in serving the customer interest in the best way. There are proper grievances redressal mechanism put in place by the RBI which will not be available if you take the loan from indivuals

But some banks legit charge you excessive interests and charge you too much towards paperwork. Is that legitimate or justified?