Cookies help website users perform certain functions. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the website.
If you wish, you can change your cookie settings at any time.
Tel: 020 7561 1786 (Multilingual advisors available) • Fax: 020 7272 8192 • Email: email@example.com
Help Us Beat the Loan Sharks.
What is Community Investment?
Community Investment is a way of using some of your savings to benefit the community with the
Credit Union. The Credit Union is a co-operative formed on the basis of mutual self help rather than charity. It encourages saving rather than borrowing, with the savings being pooled and “reinvested” into the community in the form of low cost ‘Saver Loans’. These low cost loans can then be accessed as an alternative to high interest credit used by less advantaged people in our community.
Why should I do it?
For many people, the ability to borrow money can make the crucial difference in being able to replace a broken cooker, fridge or simply being able to buy the school uniforms. More and more people are having to take out loans and a lack of options means that they are often forced to turn to high interest providers. With some well-known payday loan companies charging APR’s of 7,000%, these loans cost people a fortune and often leaves people unable to buy basic foodstuffs.
Access to the Credit Union’s low cost credit is essential for such people. Our ‘Saver Loan’ is lent at a rate of just 12.7%apr on the reducing balance and greatly reduces the costs of borrowing for some of society’s poorest members. Recent financial analysis concluded that for every £1 we lend to members, they save a full £1.25 over the course of a year in interest payments, bank charges and fees.
How does the ‘Saver Loan’ help people in the long term?
When someone takes out a ‘Saver Loan’ with the Credit Union, part of their repayments are allocated to a savers account which they cannot access until the loan is repaid. In this way, over time, members move from being borrowers into being savers and are more likely to build up the savings necessary to overcome problems themselves when they arise.
How much does it cost me?
It costs nothing to make a Community Investment. The money you invest remains your money and can be withdrawn on demand, normally within 5 working days. Savers are also paid an annual dividend on their savings which is a distribution of surplus in the lending business.
Is my money safe?
Your savings with the Credit Union are protected under the Financial Services Compensation scheme (FSCS). This guarantees repayment of savings of up to £75,000 per person if the Credit Union were to fail. The FSCS will automatically compensate savers without their having to apply. The FSCS aims to compensate the majority of savers within seven days and pays any remaining claims with twenty working days.
|The chart below indicates how much your Community investment can benefit borrowers: |
Click here to download the Community Investment Application Form.