Canara Bank on Tuesday said it has hiked the benchmark MCLR by up to 0.15 per cent, a move that will make loans costlier.

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The revised marginal cost of funds-based lending rate (MCLR) across various tenors would be effective from Wednesday, the lender said in a regulatory filing.

The benchmark one-year MCLR will be 7.75 per cent against the existing rate of 7.65 per cent.

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

The overnight and one-month tenor MCLRs are raised by 0.10 per cent each while the three-month maturity bucket increased by 0.15 per cent or 15 basis points to 7.25 per cent.

The hike is in line with other peers following RBI raising its key lending rate last month.

RBI hiked repo rate, at which the central bank lends to banks, by 50 basis points to 5.4 per cent.