Canara Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR), increasing it by 5 basis points across all tenors, effective May 12, 2026. The overnight MCLR rises from 7.85% to 7.90%, while the one-month rate increases from 7.90% to 7.95%. Most notably, the one-year MCLR, which affects many retail loans such as home and auto loans, now stands at 8.75%, up from 8.70%. This change indicates that borrowers with MCLR-linked floating rate loans may experience an increase in their monthly EMIs depending on their loan reset dates. Conversely, Bank of Baroda has opted to keep its MCLR rates unchanged, with its one-year MCLR remaining at 8.70%. The MCLR serves as the minimum lending rate for banks, influencing the interest rates borrowers pay on loans. Canara Bank's revised rates will apply only to new loans and those loans that are reviewed or reset after the effective date.