PDIC enhances loan incentive program to help more borrowers from closed banks

The Philippine Deposit Insurance Corporation (PDIC) has enhanced its loan incentive program, now called CLIP 3.0, to assist more borrowers from closed banks.

The program's duration has been extended until the end of 2025, allowing more borrowers of shuttered banks to benefit.

CLIP 3.0 offers increased discounts and waivers on outstanding loan obligations, provided the reduced amount is paid in full through a one-time cash settlement.

The maximum principal balance threshold for qualifying loans has been doubled from ₱5 million to ₱10 million, expanding coverage.

Borrowers with clean loans or those secured by chattel mortgage or pledge from banks closed in 2023 or earlier can receive up to a 50 percent discount on the principal, with all unbooked interest, penalties, and charges waived.

For real estate mortgage-secured loans from the same period, the program provides a reduction in unbooked interest to as low as three percent annually, along with a full waiver of unbooked penalties and other charges.

Previously, discounts for clean loans were capped at 30 percent and unbooked interest for REM-secured loans could only go down to five percent per annum.