A credit union is a not-for-profit financial institution dedicated to serving the needs of its members.

Credit unions are made up of people with a common bond, something that draws them together, for example, where they live or where they work. They are governed by a Board of Directors, elected by and from its membership.

When someone joins a credit union, they open a savings account. It is called a share account because the individual becomes part owner of the credit union.  Loans are often given according to a member’s regular savings, not on the source or the amount of their income.

Since credit unions are not-for-profit organisations, any money made above the cost of operations is returned to the members in the form of a dividend.

Credit unions are able to offer reasonable interest rates on loans as much of the work is done by volunteers, keeping running costs to a minimum. Loans are either given according to a members regular savings or their ability to repay.

Contact your local credit union to discuss current services available.