New Delhi, May 13 -- Canara Bank on Tuesday hiked its Marginal Cost of Funds Based Lending Rate (MCLR) rate by 5 basis points (bps), effective from 12 May, according to the public sector lender's filings with the exchanges.

MCLR rate benchmarks impacts banks' floating-interest rate loans across tenors for auto or car loans, home loans, personal loans; and is revised periodically in line with a bank's changing policies.

It differs from the repo rate as MCLR is the minimum applicable rate for customers borrowing from banks, while the latter is the rate at which banks can borrow from the central bank, the Reserve Bank of India (RBI).

Implemented in 2016, Marginal Cost of Funds Based Lending Rate or MCLR is the minimum interest rate at whi...