More Filipinos Are Pressing Pause on Loan Payments Instead of Missing Them, Tonik Reports

As Filipino households continue to juggle rising living costs and economic uncertainty, many borrowers are choosing to temporarily pause their loan repayments rather than risk falling behind altogether.

Tonik Digital Bank says more customers are taking advantage of Payhinga, its built-in loan payment holiday feature, with usage climbing threefold over the past year. According to the bank, activation among eligible customers increased from 10 percent in January 2025 to nearly 31 percent, peaking at almost 34 percent during periods of heightened economic pressure.

The trend suggests that borrowers are using repayment flexibility as a safety net during temporary financial setbacks instead of waiting until they have already missed payments.

Unlike traditional loan restructuring, which often comes after a borrower’s credit record has already been affected, Payhinga is an optional feature customers can choose when applying for a Tonik loan. It allows them to temporarily suspend loan repayments when unexpected financial challenges arise, helping them avoid penalties, missed payments, and unnecessary damage to their credit profile.

The feature is available across Tonik’s consumer lending portfolio and includes Credit Life Insurance provided by Sun Life Grepa Financial, Inc., giving borrowers an added layer of financial protection during difficult periods.

“Financial inclusion doesn’t end when a loan is approved,” said Mila Bedrenets, Chief Growth Hacker at Tonik. “Real financial inclusion means helping customers successfully repay their loans even when life becomes difficult. For many Filipino families, a temporary loss of income or a sudden increase in expenses shouldn’t permanently damage their financial future.”

Tonik also reported growing adoption of the feature even before customers needed to use it. Over the past 17 months, the number of borrowers choosing to include Payhinga with their loans grew by 220 percent, reflecting increasing awareness of the importance of repayment flexibility as part of financial planning.

More importantly, the bank said actual usage accelerated as economic conditions became more challenging, indicating that borrowers are relying on the feature during genuine financial hardship rather than as a routine repayment option.

The service is designed primarily for working Filipinos earning between ₱25,000 and ₱40,000 a month, many of whom serve as the primary breadwinners for their families. For households in this income bracket, even a short interruption in earnings can quickly lead to missed loan payments and long-term financial consequences.

Instead of forcing borrowers into delinquency, Payhinga allows them to pause repayments temporarily and resume once their financial situation improves. According to Tonik, this benefits both customers and the bank by helping borrowers preserve their credit standing while improving the long-term quality of the lender’s loan portfolio.

The initiative also reflects Tonik’s broader approach to digital banking, which combines access to credit with tools designed to help customers successfully complete repayment. The bank has increasingly focused on risk-managed lending supported by data-driven underwriting and customer-centric product design.

“Many digital lenders compete on how quickly they can approve loans,” Bedrenets added. “We believe the bigger responsibility is helping customers successfully complete their financial journey. A payment holiday may seem like a small feature, but during difficult economic periods it can make the difference between temporary hardship and long-term financial exclusion.”

As economic uncertainty continues to affect household finances, Tonik believes repayment flexibility will become an increasingly important part of responsible digital lending, helping borrowers manage temporary setbacks while supporting a healthier and more resilient credit ecosystem.

Tonik is the Philippines’ first standalone digital bank licensed by the Bangko Sentral ng Pilipinas and is insured by the Philippine Deposit Insurance Corporation (PDIC) for deposits of up to ₱1 million per depositor. Its products, including the Credit Builder Loan, Shop Installment Loan, and Upsell Loan, are available entirely through the Tonik mobile app without requiring branch visits.