The main reasons why people come together to form or join credit unions are:
To create a source of credit for the benefit of members at a fair and reasonable rate of interest.
To promote the welfare of the community.
To encourage saving by helping themselves save on a regular basis, thereby building up a fund of money for their own benefit and that of other members.
To help members use their resources to the best advantage.
Credit unions have been very successful in helping people take control over their personal savings. They are an effective means of teaching the value of voluntary action and community development. The members are the credit union. They provide services to themselves.
We are different from high street banks because we are 'not-for-profit' financial co-operative, owned and controlled by its members.
In addition, all surplus profits are returned to our members in the form of a dividend.
Our ethos is to promote savings, and to make financial products and services available to everyone who lives or works in Birmingham.
Adults and children make deposits into the credit union to build up their savings, known as ‘shares’ for adult members.
After a period of saving, adults can apply for a loan, at a low rate of interest – no more than 1.5% per month (19.7% APR) – and including free life insurance. The size of a loan depends on the regular savings pattern, the amount that has been saved and ability to repay...
