Credit Unions and Community Banking

Credit Unions provide a local savings and loans service for their members. Loans are given according to a member’s regular savings, not on the source or the amount of their income. They are able to offer low interest rates on loans as much of the work is done by volunteers, keeping running costs to a minimum.

There are two Credit Unions in Coventry and five covering Warwickshire. Membership is open to anyone who lives or works in a Credit Union’s area.

At the end of each year, profits are given back to members in the form of a dividend on savings, once all overhead costs have been covered.

The Credit Union movement is growing rapidly with much of the country now covered. Credit Unions are now looking to provide a wider range of services including:

• Easier access to basic bank accounts
• Easier access to money advice
• Bill budgeting services.

Credit Unions can offer accredited training for their volunteers, which is nationally recognised. This not only helps the Credit Union to run more efficiently, but also acts as a path to employment for many volunteers.

The Credit Unions in Coventry and Warwickshire have formed a partnership with the Coventry and Warwickshire Reinvestment Trust to offer Heart of England Loans which can be accessed by people on very low incomes.