To give customers the benefit of the policy rate cut by the Reserve Bank of India, public sector Canara Bank has cut the fund's marginal cost based lending rate by 0.10 per cent on all maturity loans. This deduction has come into effect from August 7. After this amendment, Canara Bank has reduced MCLR by 0.20 percent in the last six months.  Thus, the one-year MCLR has come down to 8.50 percent, from 8.70 percent earlier. The Bangalore-headquartered bank said it would announce further cuts in loan rates soon. Canara Bank will also offer a repo rate linked loan product. In such a situation, customers taking loans at floating rates will have two options.  MCLR linked loan or repo rate linked loan. If a customer takes a loan linked to the repo rate, he will get direct benefit on the reduction in the repo rate. Earlier, Oriental Bank of Commerce and IDBI have also announced their interest rate cuts.