Canara Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points, effective from May 12. This adjustment influences the interest rates on floating-rate loans, including auto loans, home loans, and personal loans, potentially leading to higher equated monthly installments (EMIs) for borrowers. The MCLR serves as the minimum interest rate for lending and is distinct from the repo rate, which is the rate at which banks borrow from the Reserve Bank of India (RBI). The one-year MCLR is particularly crucial as most retail loans are linked to it. Consequently, an increase in MCLR can lead to higher interest rates and EMIs for customers. Borrowers with existing loans at Canara Bank should be aware that this revision will apply to new loans, renewals, and resets after the effective date. It is advisable for those with significant loans to consult financial advisors to explore refinancing options or balance transfers.