The three main aims of a credit union are:
- to encourage its members to save regularly
- to provide loans to members at very low rates of interest
- to provide members with help and support on managing their financial affairs
How do they work?
The members make regular savings, as little or as much as they wish. These savings form a common pool of money from which loans are made to members. When members have been saving for a certain period of time (usually about 12 weeks) they can apply for a loan from the pool. Interest on the loan is charged at low rates.
Who can join a credit union?
People who join a credit union must belong to what is called a 'common bond'. This could be that you live in a specific area, you work for a particular employer, or that you are a member of a club or association.
Credit unions welcome everybody from within the common bond regardless of income, employment status or age.
For information on Croydon Merton & Sutton Credit Union, visit the CMS Credit Union website or telephone 020 8760 5711.
Credit unions have to be registered with the Financial Services Authority (FSA) and they are covered by the Credit Union Act 1979.