Credit union

• Business associations
• Credit union

• Home
•  ⁄  Business & investment 
•  ⁄  Support & advice 
•  ⁄  Business associations 
•  ⁄  Credit union

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 (if required)

What are the benefits of a Credit Union?

• it is an easy and convenient way to save and borrow 
• it offers very low cost loans 
• insurance at no direct cost
• it's a way to learn new skills

Credit Unions can provide a focal point for a community by bringing people together, to work alongside each other for their own benefit and the benefit of the community as a whole with organised events, family fun days, quizzes, etc.

A Credit Union can help to revive the local economy by keeping money in the community. Loans to members can mean income for local shops and businesses.

Who supports Credit Unions?

• Churches

• community groups

• National Consumer Councils

• Citizens Advice Bureau

• Trading Standards

• Police

• Fire

• taxi drivers

• Local Authorities, etc.

How do they work?

The members make regular savings, as little or as much as they wish. These savings then form a common pool of money from which loans are made to members.

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 reside in a specified area, or 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.

How soon and how much can I borrow from a Credit Union?

The amount you will be able to borrow will depend on how much you need, what you can afford to repay, and the Credit Union's policies.

In the early days the Credit Union will allow small loans, becoming bigger as the Credit Union gets bigger.

How secure is a Credit Union?

• Credit Unions have to be registered with the Financial Services Authority (FSA)
• they are covered by the Credit Union Act 1979
• they are independently audited
• they are regularly monitored by the Financial Services Authority

Your business is private in a Credit Union because all members and officers who have access to personal information must act in a confidential manner at all times

Are they insured?

• they are insured against fraud and theft
• they provide life and loan protection insurance at no direct cost to the member payable to a nominated beneficiary
• the life savings insurance means that if you die, your beneficiary can receive up to twice the value of your shares
• the loan protection insurance covers the amount of your loan outstanding

Where do Credit Unions exist?

In most of the world, Credit Unions are well established. Starting in Germany 150 years ago they spread throughout Europe, to North America, Canada, Asia and to Ireland.

One third of the adults in Ireland are members of a Credit Union. Credit Unions are steadily increasing throughout the UK both in communities and the work place (eg. Police Force, British Airways, Fire Service, local authority employees etc.).

Money Spider Credit Union

Money Spider Credit Union Limited is a democratic financial co-operative. It is owned and operated for the benefit of its members, the very people who save and borrow with it. Every member of Money Spider is an equal owner and will vote to appoint the Board of Directors.

Who can join?

Money Spider is exclusive to all who live or work within South Derbyshire. It is open to all who wish to save regularly - but members' savings can be as little or as much as you wish.

How can I save?

Money Spider operate a number of collection points throughout South Derbyshire. See their website www.moneyspidercu.org.uk for details.

What are the rules for borrowing?

In order to be eligible to apply for a loan you must have been a regular saver for a short while. The interest on the loan is charged on the reducing balance. Every payment you make reduces your interest.

When Money Spider earns a surplus in a financial year, the members may elect to pay a dividend based on the average share holding throughout that year.

For further information on the Money Spider Credit Union or an application form contact:

Money Spider Credit Union Limited
46/48 Grove Street
Swadlincote
Derbyshire
DE11 9DD

Tel. 01283 219 761
Web: www.moneyspidercu.org.uk (external link)
email: services@moneyspidercu.org.uk

The Money Spider Credit Union is regulated and authorised by the Financial Services Authority Reg No: 695c Ref No: 223340.

To volunteer with the Money Spider Credit Union contact the Volunteer Centre at South Derbyshire CVS (external link)