Soaring interest rates on home loans and a recent rise in stock markets are forcing borrowers to take away their savings from the life insurance industry.

The country's largest mortgage finance company, HDFC, may reduce lending rates if the central bank does not tighten rates or resort to a monetary squeeze by hiking the cash reserve ratio (CRR).

Corporation Bank, an Indian bank in public sector, has brought a drop in its floating home loan rates by a quarter per cent. The cut on interest rates will be applicable to the loans with tenure of five to fifteen years.

HDFC, the country's largest housing finance company, has made a quantum jump in the home equity business by offering housing loans against property at 13.25%.