PDIC Expands CLIP Program for Closed Bank Borrowers

The Philippine Deposit Insurance Corp. (PDIC) has enhanced and extended its Closed Bank Loan Incentive Program (CLIP) through 2025 to assist more borrowers of closed banks.

Now called CLIP 3.0, the program—originally launched in 2021—aims to help borrowers maintain creditworthiness and avoid foreclosure of mortgaged assets.

It offers significant debt relief through discounts and waivers, provided borrowers pay their reduced loan obligations in full via a one-time cash settlement.

As the statutory receiver of closed banks, the PDIC collects loan payments to boost funds for settling claims of the banks’ creditors.

Under the enhanced version, the qualifying principal balance threshold has been raised from PHP 5 million to PHP 10 million, expanding eligibility to more borrowers.

Discounts and waivers vary based on the year of bank closure and the type of loan, whether clean, secured by chattel mortgage or pledge, or by real estate mortgage (REM).

Borrowers from banks closed in 2023 or earlier, with clean loans or loans secured by chattel mortgage or pledge, may receive up to a 50% discount on their principal balance.

Unbooked interest, penalties, and other charges are also fully waived.

For loans secured by REM, borrowers may benefit from reduced unbooked interest rates as low as 3% per annum, along with a full waiver of unbooked penalties and other charges.

These benefits are available to borrowers who settle in full via one-time cash payment by Dec. 31, 2025.

Previously, clean loans were eligible for up to a 30% discount, while interest on REM-secured loans was reduced only to 5% per annum.

Meanwhile, borrowers from banks closed in 2024 and 2025 with clean loans or those secured by chattel mortgage or pledge also qualify for a 50% discount and full waiver of unbooked charges.

For REM-secured loans from these years, CLIP 3.0 offers a reduced interest rate of 5% per annum and full waiver of unbooked penalties and other fees.

Eligible borrowers must settle in full via a one-time cash payment within one year of receiving the PDIC notice.

Under the previous CLIP 2.0, clean loans received only a 15% discount, and REM-secured loans were not covered by waivers or interest reductions.

For more information, borrowers may visit the PDIC website at www.pdic.gov.ph/CLIP, call the PDIC Public Assistance Hotline at (02) 8841-4141 or the toll-free hotline 1-800-1-888-7342, email clip-pad@pdic.gov.ph, or message the official PDIC Facebook page at facebook.com/OfficialPDIC.