State-owned Canara Bank on Thursday announced a hike in the benchmark lending rate by 5 basis points across some tenures, a move that could increase the cost of borrowing.

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

The benchmark one-year MCLR will be 9.05% against the existing rate of 9.00%. 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.

Meanwhile, the two-year and three-year MCLRs were kept steady at 9.30% and 9.40%, respectively.