2 weeks Ago By Katlene O. Cacho-Laurejas
THE Philippine Deposit Insurance Corp. (PDIC) has launched an improved version of its Closed Bank Loan Incentive Program (Clip), now dubbed Clip 3.0, aimed at helping more borrowers of closed banks settle their obligations and avoid foreclosure.
Initially introduced in 2021, the program offers substantial discounts and waivers on outstanding loans, provided borrowers settle their obligations through a one-time full cash payment. The enhanced Clip 3.0 has been extended through Dec.
31, 2025, and includes key changes to broaden its reach and impact. Among the major updates is the increased qualifying principal balance threshold, which has doubled from P5 million to P10 million, allowing more borrowers to benefit from the incentives. Borrowers of banks closed in 2023 or earlier with clean loans or those secured by chattel mortgage or pledge can now avail themselves of up to 50 percent discount on their outstanding principal.
All unbooked interest, penalties and other charges are also fully waived. For loans secured by real estate mortgage (REM), borrowers may enjoy a reduced unbooked interest rate as low as three percent per annum, along with full waivers of penalties and other charges. For borrowers of banks closed in 2024 and 2025, similar benefits apply: a 50 percent discount for clean or chattel-secured loans and a reduced five percent annual interest for REM-secured loans, with all associated fees waived.
Eligible borrowers under this category must settle their discounted loans within one year of receiving PDIC’s notification. PDIC said that these efforts not only support borrowers in maintaining their creditworthiness but also help maximize the recovery of funds for settling claims from the creditors of closed banks. Compared to previous iterations, Clip 3.
0 offers more generous incentives, with earlier versions offering only up to 30 percent discount and less favorable terms for REM-secured loans. / KOC.
