PDIC launches the CLIP initiative | Manila weather
The state-owned Philippine Deposit Insurance Corp. (PDIC) launched the Closed Bank Loan Incentive Program (CLIP), a no-fee, easy-to-pay initiative designed to help borrowers from banks that have been closed by the Monetary Board.
“The program encourages borrowers from closed banks to immediately settle their outstanding loan obligations, to enable them to maintain their creditworthiness and optimize recovery from liquidation for the benefit of creditors of closed banks,” he explained. in a statement released over the weekend.
CLIP offers significant discounts to closed bank debtors with principal loan balances of P1 million or less who will opt for a one-time cash settlement.
The incentive program, according to the PDIC, covers unencumbered loans – not subject to real estate mortgages or any liens in favor of closed bank creditors – from banks that closed in 2020 and later, and offers a 10% discount. % on outstanding. the balance of principal and accrued interest receivable plus other charges, if any, as well as a full waiver of unrecognized interest and penalty charges. The incentive can be used within one year of sending the notice to borrowers.
CLIP also offers incentives to clients with own unencumbered loans and unencumbered loans backed by a real estate mortgage, chattel mortgage or pledge from banks that closed in 2019 or before.
“A 25% discount on the outstanding principal balance and accrued interest receivable plus other charges, if any, and a full waiver of unrecognized interest and penalty charges are offered for unencumbered own loans by through a one-time cash payment, “said the state-run business continued.
Meanwhile, borrowers with unencumbered secured loans may be eligible for a reduction of unrecognized interest from the original loan interest rate to just 5% per annum of the principal amount, as well as a full waiver of the loan. unrecognized penalties and other costs. These incentives are available to eligible borrowers until September 30, 2022.
Borrowers with matching deposits in closed banks, PDIC noted, can take advantage of these incentives for their loan balances after netting.
“FPIC incentives are supposed to help borrowers pay off their loans on easy terms and with full waiver of penalties,” he said.