Banks Optimal Capital Structure will reduce short term loan interest rates

Ok!! The capital Structure philosophy is true. The optimal capital Structure will minimise costs of funding and this will reduce interest rates. The first one has lower debt proportions and higher equity, hence a company has to earn additional money to payback the lenders and shareholders. So the bank will charge more interest rates. In the next model, capital Structure changed and required rate of return to pay back customers is reduced, this will allow the loans to be given at lower rates. 

Ok  got it