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PDIC offers CLIP 2.0 to closed banks’ borrowers

ILOILO CITY (PIA) -- Borrowers of 328 closed banks nationwide as of December 2022 can now see hope with the Philippine Deposit Insurance Corporation (PDIC) through its Closed Bank Loan Incentive Program (CLIP).

CLIP 2.0 offers incentives and discounts for those with outstanding principal loan balance P5 million and below.

PDIC, in partnership with the Philippine Information Agency 6, disclosed during the PIA Kapihan at Citadines Amigo Hotel in Iloilo City that the 124,788 borrowers of the 20 closed banks in the region may avail of the CLIP which will end by December 2023.

PIA Kapihan with PDIC. (PIA6 photos)

To date, PDIC records show that there are 689,056 total number of loan accounts amounting to a total outstanding principal balance of P44.89 billion.

Assistant Vice President of the Loans Management Department Fredy S. Galosmo, discussed the CLIP 2.0 as part of PDIC’s loan resolution strategies which increased the loan amount threshold to P5 million in outstanding principal balances to help more eligible borrowers to apply for loan incentives based on the year their bank was closed and whether their loans are clean or secured.

Galosmo also explained the difference between the two types of loan.

The clean loan, also known as an unsecured loan, does not require any collateral or security from the borrower, while a secured loan is backed by a collateral or an asset provided by the borrower.

Assistant Vice President of the Loans Management Department Fredy S. Galosmo explains the benefits of CLIP 2.0 before Iloilo-based media.*(PIA6 photo)

Borrowers with clean loans in banks closed starting in 2022 may avail of the CLIP 2.0 incentives with a 15 percent discount on outstanding booked interest (interest recorded before closure), penalties and other charges and full waiver of unbooked interest (interest recorded after closure), penalties, and charges within one year from December 21, 2022 or from their receipt of the Notice from the PDIC, whichever comes later.

Meanwhile, borrowers, either with clean loans or secured loans, in banks closed in 2021 and prior years, who were not able to avail of the incentives under the original CLIP program, may avail of the CLIP 2.0 incentives with a 30 percent discount on clean loan outstanding principal, booked interest, penalties, and other charges and full waiver of unbooked interest, penalties, and charges.

For secured loans, a full waiver of unbooked penalties, and other charges and interest rate reduced to only 5 percent per annum on unbooked interest until December 31, 2023.

“After paying off their loans, this will help the borrowers to regain their good credit standing,” Galosmo said.

In Iloilo City there were six closed banks on PDIC record which constituted 87,094 loan accounts with outstanding principals of over P900-million.

PDIC hopes to equip borrowers of closed banks with the necessary information and support to overcome the challenges posed by the closure of banks and to emerge stronger and more resilient in their financial journey. (EAD-AGP/ED/PIA6)

About the Author

Elijshah Dalipe

Information Officer

Region 6

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