Well, the popular saying says, Never borrow or take a loan to start-up a business.
For me, the saying in not 100% accurate. I would preferably say, Do not take a loan to start a business you have no knowledge about or without a market for it.

Firstly, loan or borrowing funds can be from different sources. I will categorize into 2.
1. Family/Friend Loan
2. Institutions (Bank/Financing company)

Family/Friend Loan: This totally depends on past relationships, of which interest can also be included to the terms. One who understand how bank loans works can approach family/friend with a loan proposal stating the interest rate and repayment structure. Which can be legally back (even in court). Advantage – interest free or loan interest rate.

Institution (Bank): The interest rate is mostly high, which might not be too good for a startup business. But if the business is that which need equipment Banks like, Bank of industry could finance the machinery (Not sure of the terms). Collateral will likely be required.

Secondly, If it’s startup business you have to be sure you understand the business operations before thinking of getting a loan.

thirdly, do a market feasibility study. Do you have a market for the business, are there needs for your product, what advantage do you have against competitors already in the market.

Forty, paying the loan monthly won’t it have a negative effect on the business operations.

I you can carefully answer all of this. you would be sure if its a good option for you. Cause if you don’t have the funds to start but having other capitals (relationship, experiences) should be capitalize. Thanks