The Philippine Deposit Insurance Corporation (PDIC) has announced the indefinite continuation and simplification of its Closed Bank Loan Incentive Program (CLIP) which is now CLIP 4.0, a move aimed at delivering faster, clearer, and more accessible relief to borrowers of closed banks starting January 1, 2026.
First launched in 2021, CLIP has been a cornerstone of the PDIC’s efforts to help affected borrowers settle long-standing loan obligations in closed banks, preserve their credit standing, and avoid the foreclosure of mortgaged assets. With the latest enhancements, the PDIC hopes to expand the program’s reach and encourage more availments.
Under the simplified CLIP 4.0, borrowers of closed banks with total outstanding principal balances of up to P10.0 million may qualify for a range of incentives, provided payment is made through one-time cash settlement. Furthermore, the incentives will now apply to all closed banks irrespective of the date of closure and will be determined solely by loan type and status, ensuring greater transparency, consistency, and ease of implementation.
One of the most notable improvements applies to loans secured by real estate mortgage (REM). The interest rate on unbooked interest has been standardized at 3% per annum, replacing the earlier variable rates of 3% to 5% that depended on factors such as bank closure date, age and status of loan. This change offers borrowers more predictable and affordable settlement terms.
CLIP 4.0 also retains the 50% discount on outstanding principal and booked interest, penalties and other charges for borrowers with clean loans or loans secured by chattel mortgage or pledge. In addition, all borrowers, regardless of loan type, continue to benefit from full waivers on unbooked penalties and other applicable charges.
By simplifying the rules and further enhancing the incentives and indefinitely extending the program, the PDIC reinforces its commitment to providing meaningful financial relief, enabling borrowers of closed banks to resolve their obligations more efficiently and move forward with renewed financial stability.
As the statutory receiver of closed banks, the PDIC collects loan payments from borrowers of closed banks to augment the liquid funds earmarked to settle creditors’ claims. By sustaining this incentive program, the Corporation ensures faster and more efficient loan collections and optimized recovery for creditors.
For more information, closed bank borrowers may visit the PDIC website at www.pdic.gov.ph/CLIP, call the PDIC Public Assistance Hotline at (02) 8841-4141 or the toll-free number 1-800-1-888-PDIC (7342) during office hours, send an email to clip-pad@pdic.gov.ph, or send a private message through the official PDIC Facebook page at www.facebook.com/OfficialPDIC.
About the Author
