We have Inhouse SQL database and Application is running in Azure VM. This is an internal application. SLA is not a constraint. Traffic is also nominal. What network is suitable for me to start with, to keep cost low.
Point to Point Vs Point To Site vs Site To Site Vs Expressroute in Azure
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Your use case narrows it down to Site-to-Site or Express Route.
Looking at your statement, I would suggest going with a Site-to-Site tunnel to your Azure VPN Gateway. It's the most cost-effective way but while it's cheaper than ExpressRoute, it also comes with lower bandwidth and higher latency. Also d no SLA guarantees as your tunneled traffic travels over your Internet connection and whatever network device (firewall/router) that is on the on-prem side of the connection.