Income tax_query

HELLO FRIENDS ONE OF MY FRIEND HAS TAKEN SECURED LOAN @ 11% FROM FINANCE COMPANY & NOW SHE WANTS TO GIVE FUNDS TO OTHER PARTY AS A LOAN & ADVANCE @ 18% (LIKE REFINANCE) . CAN SHE DO SO? IF YES HOW TO DO ACCOUNTING TREATMENT? IS THERE ANY LEGAL CONSEQUENCES UNDER INCOME TAX? SHE FILES RETURN UNDER SECTION 44AD.