We determine the equation of state (EOS) of nuclear matter with the inclusion of hyperons in a self-consistent manner by using a Modified Quark Meson Coupling Model (MQMC) where the confining interaction for quarks inside a baryon is represented by a phenomenological average potential in an equally mixed scalar-vector harmonic form. The hadron-hadron interaction in nuclear matter is then realized by introducing additional quark couplings to $sigma$, $omega$, and $rho$ mesons through mean-field approximations. The effect of a nonlinear $omega$-$rho$ term on the equation of state is studied. The hyperon couplings are fixed from the optical potential values and the mass-radius curve is determined satisfying the maximum mass constraint of $2$~M$_{odot}$ for neutron stars, as determined in recent measurements of the pulsar PSR J0348+0432. We also observe that there is no significant advantage of introducing the nonlinear $omega$-$rho$ term in the context of obtaining the star mass constraint in the present set of parametrizations.