PDIC expands CLIP 3.0 to help borrowers with up to ₱10M in debt

The Philippine Deposit Insurance Corp. (PDIC) has updated and expanded its Closed Bank Loan Incentive Program (CLIP) in 2025 to assist more borrowers from closed banks manage their debts.

Under CLIP 3.0, the PDIC increased the qualifying principal balance threshold to ₱10 million, up from ₱5 million previously.

The program now offers discounts and waivers on outstanding loan obligations, with clean loans or those secured by chattel mortgage or pledge receiving a discount of up to 50 percent for banks closed in 2023 or earlier.

For real estate mortgage (REM)-secured loans from the same period, unbooked interest is reduced to as low as three percent per annum and all penalties are waived.

Borrowers must settle their discounted loan amounts through a single cash payment by December 31, 2025, to qualify for these incentives.

The PDIC collects these payments to boost liquid assets available for settling creditors' claims of closed banks.