For SQL Server, you should look at configuring Availability Groups between the on-premises and Azure VMs hosting SQL Server.
This article describes the configurations in some detail.
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We do have a Site to site VPN configured from Azure to On Premises and we do have around 20 applications hosted in 20VMs. We now want to create Azure as the secondary passive site and host 20VMs which will be the replica of the On Prem VMs so that Azure VMs can take over the load if the on prem is down. Can we achieve the same via Azure load Balancer or Azure Traffic manager and if somebody can inform how can we securely and cost effectively achieve this.
For SQL Server, you should look at configuring Availability Groups between the on-premises and Azure VMs hosting SQL Server.
This article describes the configurations in some detail.