Credit unions are financial co-operatives owned and managed by the members who use them. They offer a convenient way to save and the opportunity to access low cost loans. Credit unions are mutual societies, registered and regulated by the Financial Services Authority, and are governed by law, namely the Credit Union Act, 1979.
Membership of credit unions is based on what is known as a 'common bond', something which the members have in common e.g. where members work or live. Families who live or work within the county of Denbighshire south of the A55 (our common bond) are welcome at our Credit Union.
Credit unions encourage both social and economic development on a local basis. They retain money within communities by encouraging local people to save locally rather than with national institutions where profits go to shareholders out of the community. People can also develop their skills through volunteering opportunities in a credit union.
Members of a credit union save in a common fund. This fund can be then used to make low interest loans to its members. All interest on loan repayments is reinvested in the credit union and nothing leaves the community. By law the maximum interest a credit union can charge on loans is 2% per month (26.8% APR).
Successful credit unions can pay an annual dividend to members on their savings.
Why do we exist?
We exist because we are local people like you interested in preserving and improving our community. We provide a very welcome service directly to our members and do not have any external shareholders. Caledfryn Credit Union is affiliated to the Association of British Credit Unions (ABCUL) the principal trade association for credit unions in Britain.
Credit unions exist solely to serve their members. Only members can apply for loans. Members are encouraged to continue saving when repaying a loan. This not only helps build up the member's own savings but also contributes to the credit union’s savings pool enabling us to grant loans to more members within the community.
Benefits of borrowing from a credit union:
There is no minimum amount you can borrow and repayments are tailored to suit individuals.
No additional charges are applied if your loan is repaid early.
No arrangement fees are levied.
All loans come with free insurance. If you die before the loan is repaid your debt will be automatically cleared, subject to certain conditions (click on link to "insurance" on the navigation bar on the left for more information.)
Each loan application is assessed on it own merits.
By law the maximum interest rate is 2% per month levied on the reducing balance. This is equivalent to a 26.8% annual rate of interest