Loan given by individual is asset for wealth tax?

Only that are defined as assets U/s 2 (ea) of the wealth Tax act can be taxable under the same.

Assets” in relation to the assessment year commencing on the day of April, 1993, or any subsequent assessment year, means —

(i) Any building or land appurtenant thereto : Any building or land appurtenant thereto, hereinafter referred to as ‘house’ is as an asset. Any guest house and any residential house or commercial house including a farm house situated within twenty-five kilometres from the local limits of any municipality (whether known as a municipality, a municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board, but does not include —

a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole time employment, having a gross annual salary of less than five lakh rupees.
any house for residential purposes or commercial house which forms part of stockin- trade.
any house occupied by the assessee for the purposes of his Business or Profession ;
any residential property let out for at least 300 days in a previous year
any property in the nature of commercial establishments or compliances.

(ii) Motor Cars : Motor cars are “assets” provided they are not used either as stock-in-trade or running them on hire. Thus, automobile dealers are not assessable on the value of motor cars, as they are stock-in-trade. Also a taxi-operator is not assessable on the value of tax, as it is being used on hire. Thus, motor-car used for personal purpose in an asset.

(iii) Jewellery : jewellery, bullion and furniture, utensils or any other article made wholly or partly of gold, silver, platinum or an other precious metal or any alloy containing one or more of such precious metals:

Provided that where any of the said assets is used by the assessee as stock-in-trade, such assets shall be deemed as excluded from the assets specified in this sub-clause. However, jewellery shall not include Gold Deposit Bond 1999.

(iv) Yachts, boats and aircrafts : If yachts, boats and aircraft is held by the assesse for personal use, it is “asset” liable to Wealth-tax. If such article is for commercial use, or as apart of stock in trade it is not an assets and hence not taxable.

(v) Urban land;

(vi) Cash in hand: Cash in hand in excess of fifty thousand rupees (50,000), of individuals and Hindu Undivided Families (HUF) and in the case of other persons any amount not recorded in the books account.

Any asset which does not fall under the aforesaid list of defined assets is not chargeable to Wealth-tax. Thus, shares, securities, bonds, debentures, godowns, stock-in-trade, business assets, plant, machinery, bank deposits, deposit in post office etc. are not assets