Question

on which asset the bank charge high rate of interest on loan?

Answer 1

Banks charge different rates of interest based on the risk perception and risk attached to different loans. It depends not only on their cost of funds but also their history of experience in certain assets proving more difficult of recovery, costs associated with that redovery, loan losses in that asset class and so on. It also on the restrictions placed by the regulator, prudential norms for that asset class. 

Hence the rate of interest is different. It will not be too long before you see another differentiation based on the customer itself. Same asset class for different customers with different credit risk mean different interests. It is now prevalent in business loans.