The Philippine Deposit Insurance Corp. (PDIC) announced on Tuesday the enhancement and extension of its Closed Bank Loan Incentive Program (CLIP) through the end of 2025. This initiative aims to assist borrowers of closed banks in preserving their credit standing and preventing asset foreclosure.
Renamed CLIP 3.0, the program offers an array of incentives such as discounts and waivers, designed to bolster the financial stability of borrowers. Those with outstanding principal balances of up to P10 million are eligible to benefit from these provisions. The specific incentives available under CLIP depend on the closure year of the bank and the type of loan held by the borrower.
This endeavor is in alignment with PDIC’s mission to uphold financial system stability and safeguard depositors. PDIC urges all qualifying borrowers to engage with the program to capitalize on its advantageous terms and conditions. Notably, borrowers can receive a 50% discount on their principal for clean or chattel-secured loans if their bank closure occurred in 2024 or 2025.
PDIC is committed to easing the financial burden on borrowers through this comprehensive incentive package, enabling them to avoid foreclosure and efficiently manage their debts. The corporation remains vigilant in monitoring and adapting its programs to address the needs of affected individuals while sustaining financial stability.
Borrowers are encouraged to contact PDIC for detailed information regarding program application processes and eligibility for specific incentives. As a state-run insurer, PDIC is dedicated to supporting borrowers impacted by bank closures.