Why are loans in India costlier than in China?

Borrowing costs, or the interest rate at which banks lend money, are higher in India than in China, Moneycontrol reported. Home and personal loan rates average around 7.5-8.45% and 10-15%, respectively, while in China, they hover around 3.1% and 3.5-3.65%. Since India has a higher government bond yield rate, lenders may face higher funding costs, leading to elevated loan rates.