Personal loan

Only tax prospective is discussed below (not the companies act compliances) and also assumed all the funds flow were happned through cheques. With that, income tax prospective is..

a) For company - they need to deduct tax (TDS) in order to claim the interest

b) in your case, you have to show the interest as income. Interest paid to bank would be allowed as expenditure if you could able to prove that there is a direct co-relation. Showing the interest income under other sources and interst pyt to bank as expenditure related to that. 

You better take full opinion from legal//tax counsel explaing total issue.