Pendle Borough Council
Market Street, Nelson, Lancashire BB9 7LG
Tel: 01282 661661 Fax: 01282 661130
Credit Unions
Low cost loans - and no catch...................
What is a Credit Union?
A Credit Union is a non-profit making financial co-operative which offers a convenient saving and low interest loan service to its members.
How do I become a member?
Anyone living or working in the particular area, defined as our common bond, can apply to join (determined by the Credit Union)
Who runs Credit Unions?
Members are elected to run the Credit Unions. All Credit unions are registered in accordance with the Credit Unions Act 1979, and the Industrial and Provident Societies Act 1965-78. Credit Unions are required to be audited once a year, and submit accounts to its members and Government Registry.
Are the Credit Unions insured against fraud or robbery?
Yes. The Treasurers, and all other persons handling the money or books, are bonded, so, in the event of dishonesty or robbery, members' money would not be lost.
Is my business private in the Credit Union?
Yes. All officers and volunteers must sign, and are bound by, a declaration of secrecy form.
How much do I have to save?
As little or as much as you like, preferably on a regular basis. For our members' convenience, savings can be made by standing order. Payroll deduction may also be possible. See your relevant Credit Union for details.
How do I get a loan?
Anyone who has been a member, usually for 3 months, has a minimum number of shares (determined by the Union) and is over 18 years old, is entitled to apply for a loan. The Credit Committee will look at your savings record and your ability to repay when deciding whether or not to grant a loan.
Am I insured against my untimely death?
Yes. Your loan would be paid off and your shares doubled at no extra cost (subject to eligibility). The money will be transferred to the person(s) nominated by you on your application form.
What will it cost you to borrow?
If you have managed to save £10 every week, after 17 weeks you could be eligible to apply for a loan of £500. Interest is charged at just 1% per month.
You will continue to save your original £10 a week (£40 a month) and a proportion of this will be used to repay your loan each month (around £28, with the remaining £12 being placed in shares).
If you choose to repay the loan over 2 years, by the time your loan balance reaches nil, your savings will have increased by £500!
* The above figures are used for illustration only and are not precise. A member's first loan may often be a lesser amount than this illustration. No minimum loan, maximum loan £10,000, subject to Credit Unions rules and policies.
Young Savers
Credit Unions in great Britain have hundreds of young savers, most of whom save at collection points with local schools. It has proved to be a valuable aid in helping gain numeracy skills and encouraging them into the savings habit. We have found them to be enthusiastic savers. In adult life these foundations will make them wise borrowers.
Our History
Credit Unions originated in Germany and were founded by Friedrich Wilhelm Raifeisen, the Mayor of a small town in Southern Germany, who, in 1849 formed societies, which later evolved into Credit Unions, for the purpose of assisting people to help themselves out of debt and poverty.
Credit Unions operate, not for profit or charity, but to serve their members. Each Credit Union is a separate, autonomous organisation and manages its own affairs. However, we work closely together with our neighbouring Credit Unions and strive to develop and share good practice.
We all aim to provide useful financial service to our members and are proving to be remarkably successful. The Credit Unions have granted hundreds of local people loans at very low rates of interest over the past ten years of service to our communities.
So what's the catch?
There really isn't one! So why not contact us, and find out more on how you and your family and friends can benefit from saving with a Credit Union.
Your Local Contacts
| Nelson Community Credit Union Ltd St. John Southworth Social Centre Vaughan Street NELSON Lancashire BB9 0JS Tel: 01282 614350 |
Colne & District Credit Union Ltd Open Door Centre |
Find out more by visiting our pages on the Lancashire Information Network Kiosk , or e-mail us, at credit@creditunion.freeserve.co.uk
