I'm looking for a simple financial web application in which I can track loans and cash flows.
Try Indenero -- it is made to easily manage your cashflow
Have you tried Mint.com? They were recently acquired by Intuit, the makers of Quicken.
Mint.com is definitely what I'd recommend for US users. There are several related questions about Mint.com alternatives for those outside the US that may be of interest to you.
Pulse is free (with limited access), super easy to set up, and pretty flexible with how you can categorize income / expense items.
It doesn't try to hook into your financial data like inDinero, it just lets you throw recurring or non-recurring (dated) transactions into categorized lists and look at the cash flow.