More Filipinos Turn to Repayment Flexibility as Economic Pressures Mount
As economic pressures continue to squeeze household budgets, more Filipinos are choosing repayment flexibility over delinquency. Tonik has seen a threefold increase in the use of its loan payment holiday, Payhinga, underscoring the growing need for financial tools that help borrowers manage temporary income shocks without compromising their long-term financial health.
Since January 2025, Payhinga activation has risen from 10% to nearly 31% of eligible customers, reaching a high of almost 34% during the height of recent economic pressures. The increase demonstrates that customers are using the feature precisely when they need it most—during temporary income shocks rather than as a routine repayment option. Unlike traditional loan restructuring, when customer`s credit history is already spoiled, Payhinga is an opt-in feature customers can select when taking out a loan. It allows borrowers to temporarily pause loan repayments when unexpected financial challenges arise, helping them avoid missed payments, penalties and unnecessary damage to their credit profile. PayHinga also comes with Credit Life Insurance provided by Sun Life Grepa Financial, Inc. which is available across Tonik’s consumer lending portfolio. It was designed to strengthen financial resilience during periods of economic uncertainty while encouraging responsible borrowing and repayment.
“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.”
Designed for working Filipinos
Tonik has also seen steady growth in customers choosing to include Payhinga when taking out a loan, for the past 17 months there was a total of 220% product growth increase. -reflecting increasing awareness of the value of building repayment flexibility into their financial plans. More importantly, actual usage accelerated as economic conditions became more challenging, demonstrating that customers are using the feature exactly as intended—not as a routine repayment option, but as temporary support during genuine financial hardship.
Payhinga, designed for working Filipinos, many of whom earn between ₱25,000 and ₱40,000 a month and serve as the primary breadwinners for their families. For these households, even a temporary interruption in income can quickly lead to missed loan payments and long-term financial consequences. Instead of forcing borrowers into delinquency, Payhinga enables them to pause repayments when necessary and resume once their financial situation stabilizes. Customers can protect both their financial stability today and their ability to access credit in the future. This benefits both customers and the bank. Borrowers are better able to preserve their credit standing and maintain access to formal financial services, while Tonik strengthens long-term portfolio quality by helping customers recover rather than default.
Financial Inclusion Philosophy
The approach reflects Tonik’s broader financial inclusion philosophy of combining responsible credit access with responsible repayment support—a strategy the bank has consistently highlighted as central to building sustainable consumer lending in the Philippines. The company has increasingly focused on profitable, risk-managed lending while expanding financial inclusion through 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 macroeconomic uncertainty continues to affect household finances, Tonik believes repayment flexibility will become an increasingly important component of responsible digital lending—helping customers weather temporary setbacks while contributing to a healthier and more resilient credit ecosystem in the Philippines
