New Delhi, May 13 -- Borrowers with floating-rate loans are likely to see higher EMIs, as Canara Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenors by 5 basis points (bps).

This decision is effective for all Canara Bank MCLRs starting from 12 May, as detailed in a filing with BSE. Meanwhile, Bank of Baroda has kept its MCLR unchanged.

The revision is bound to impact home loans, auto loans and personal loans linked to the MCLR benchmark. This rate is generally reset periodically in line with a bank's changing policies.

Let us discuss the concept of MCLR in greater depth to better understand how this change will affect common citizens.

MCLR is the minimum interest rate at which banks can lend. The ...