PDIC extends simplified closed-bank loan incentives

The Philippine Deposit Insurance Corp. (PDIC) has indefinitely extended and simplified its Closed Bank Loan Incentive Program, now branded as CLIP 4.0, to provide faster and more accessible relief to borrowers of closed banks starting Jan. 1, 2026.

First launched in 2021, CLIP has been central to PDIC’s efforts to help affected borrowers settle long-standing loan obligations in closed banks, preserve their credit standing, and avoid foreclosure of mortgaged assets.

PDIC serves as the statutory receiver of closed banks, taking custody of their assets and records, collecting outstanding loans, and using recoveries to help settle creditors’ claims, including amounts due to depositors.

Under CLIP 4.0, borrowers of closed banks with total outstanding principal balances of up to PHP 10 million may qualify for incentives, provided payment is made through a one-time cash settlement.

The incentives will now apply to all closed banks, regardless of the date of closure, and will be determined solely by loan type and status to improve transparency, consistency, and ease of implementation.

One of the most significant changes applies to loans secured by real estate mortgages.

The interest rate on unbooked interest has been standardized at 3 percent per annum, replacing the previous variable rates of 3 percent to 5 percent that depended on factors such as the bank’s closure date and the loan’s age and status.

PDIC said the change is intended to give borrowers more predictable and more affordable settlement terms.

CLIP 4.0 also retains the 50 percent discount on outstanding principal and booked interest, penalties, and other charges for borrowers with clean loans or loans secured by a chattel mortgage or pledge.

In addition, all borrowers, regardless of loan type, will continue to receive full waivers on unbooked penalties and other applicable charges.

PDIC said simplifying the rules, enhancing incentives, and extending the program indefinitely underscores its commitment to meaningful financial relief that helps borrowers resolve obligations more efficiently and move forward with improved financial stability.

By sustaining the incentive program, PDIC also aims to accelerate loan collections and improve recoveries available for creditors’ claims.

For more information, closed-bank borrowers may visit the PDIC website at www.pdic.gov.ph/CLIP.

Borrowers may also call the PDIC Public Assistance Hotline at (02) 8841-4141 or the toll-free number 1-800-1-888-PDIC (7342) during office hours.

Borrowers may email clippad@pdic.gov.ph or send a private message through the official PDIC Facebook page at www.facebook.com/OfficialPDIC.