The Philippine Deposit Insurance Corp. (PDIC) has enhanced and extended its closed bank loan incentive program (CLIP) in 2025 to enable more borrowers from closed banks to manage their debts and avoid foreclosure.
In a statement, PDIC said the offering, now known as CLIP 3.0, has increased discounts and waivers on outstanding loan obligations to assist borrowers in settling their debts through a single cash payment.
Under the enhanced CLIP 3.0, the PDIC has raised the qualifying principal balance threshold to ₱10 million from the previous ₱5.0 million, thereby expanding the program's reach to a larger number of closed bank borrowers.
The available discounts and waivers are structured based on the year the financial institution was closed and the type of loan security involved, whether it is a clean loan, secured by a chattel mortgage or pledge, or backed by a real estate mortgage (REM).
Borrowers from banks closed in 2023 or earlier with clean loans or those secured by chattel mortgage or pledge can now benefit from a discount of up to 50 percent on their outstanding principal balance.
Additionally, all unbooked interest, penalties, and other charges will be fully waived.
For borrowers with REM-secured loans from the same period, the program offers a reduction in unbooked interest to as low as three percent per annum, depending on the loan's age and status, along with a complete waiver of unbooked penalties and other charges.
These incentives are contingent upon the borrower settling their reduced loan amount in full through a one-time cash payment by Dec. 31, 2025. The previous version, CLIP 2.0, offered a maximum discount of 30 percent on clean loans, and did not include discounts or waivers on unbooked interest, penalties, and other charges for REM-secured loans.
For individuals who borrowed from banks closed in 2024 and 2025 and have clean loans or loans secured by chattel mortgage or pledge, CLIP 3.0 provides a 50 percent discount on the outstanding principal balance, along with a full waiver of unbooked interest, penalties, and other charges.
Borrowers with REM-secured obligations from these recently closed banks can expect a reduction in the unbooked interest rate to five percent per annum and a complete waiver of unbooked penalties and other charges.
Eligible borrowers can avail of these CLIP 3.0 benefits within one year of receiving notification about the program from the PDIC, provided they settle their discounted loan in full via a single cash payment.
The PDIC, acting as the statutory receiver for closed banks, collects these loan payments to increase the liquid assets available for settling claims of the banks’ creditors.