State-owned Canara Bank on Thursday announced a hike in the benchmark lending rate by 5 basis points across tenure, a move that will make loans costlier.

The revised marginal cost of funds-based lending rate (MCLR) across various tenors would be effective from November 12, Canara Bank said in a regulatory filing.

The benchmark one-year MCLR will be 8.75 per cent against the existing rate of 8.70 per cent.

The one-year rate is used to fix most consumer loans such as auto, personal and home loans.

The overnight, one-month, three-month and six-month MCLRs are also raised by 5 basis points each, it said.