Borrowing is bad except when for a business. That could be my general rule of thumb.
But to be honest, most thigs that we cant afford come under the category of luxury or un necessary, unless its one of the basic human needs of food shelter security and medicine. So perosnal loans in my opinion are for things that we dont need mostly. Modesty is always more peaceful. And the extra money, if un necessary could always help someone in need. There are too many people in the world fitting that criteria.
Business loan however are a smart idea. In general. As you are not using all of your money but still reaping the maximum benefits, although the reward could be a little lesser than if it were all your money. But the investement to profit ratio would still be greater.
Nice piece though. A very comprehensive and simple way to differentiate 2 main types of borrowing. Good work.