Fair loans – What is a Credit Union?

Fair loans – What is a Credit Union?
September 26, 2017 Nigel Bailey

What is a credit Union?

A credit union is a financial co-operative which is owned and run by its members for the benefit of its members and typically provide fair loans. Members of a credit union usually make regular savings, often direct from their pay with agreement from their Employer. The money is then lent out to other members in the form of fair loans.

Running costs of the credit union are low. Where there is money left over from the loan interest, once the costs have been paid, this money can be made available to the members in the form of a dividend on their savings.

Last year Citysave offered a 0.25% dividend upon savings held with us.

Citysave deposits are covered by the Financial Services Compensation Scheme up to the value of £85,000.

Who can apply?

There is a legal requirement for there to be a common bond among the members of a credit union. For example the members of Citysave Credit Union all live or work in the Birmingham area or are employed by Warwick local authority.  To find out for certain whether you qualify for membership, and to see the range of services offered by Citysave Credit Union go to www.citysave.org.uk

Credit unions are different to banks because we don’t apply punitive bank charges or charge high levels of interest. Being community-based and member owned makes credit unions an ethical and affordable alternative to banks and other financial lenders.

How can you apply?

Savings and fair loans are what we specialise in and you can apply here