What is a Credit Union?
A Credit Union is a democratic, financial co-operative owned and controlled by its members. Each Credit Union is run only to benefit its members, all of whom share the common bond.
What is a common bond?
Your Credit Union is based upon a working bond, where all Members work or worked for a defined employer.
In our case that is North Tyneside Council.
How is a Credit Union different?
A Credit Union is different because it is not owned by any one person, organisation or group of shareholders. Instead, each Credit Union is owned by its members, and each member has an equal say in the running of their Credit Union. As a ‘not-for-profit’ organisation, members’ savings are used to fund loans to members at reasonable rates of interest. Similarly, the interest charged on loans is used to fund a return (or dividend) on members’ savings.
How do I become a member?
Simply visit our main office or any of our outreach sesions and fill out a membership application form. You’ll need to bring two pieces of identification with you such as:
Photographic ID such as a valid passport or driving licence.
Bank / building society / Post Office statement or utility bill dated within the last three months.
Letter from DWP, HM Revenue, other Government body, etc, dated with the last three months.
We recognise that not everybody will have these so don’t hesitate to call us on 0191 6435881 so we can advise you on alternative documentation if necessary.
What services are available to members?
The services offered may vary from one Credit Union to another, depending on the needs of members.
I am a new member, when can I start borrowing?
New members are required to build up a record of savings before applying for a standard loan. Though each member’s circumstances are unique, it is recommended that members save regularly for approximately 8 weeks before borrowing. A first loan is usually for a maximum amount of twice the amount you have in your shares, though usually this is capped at £500 in the first 6 months of membership.
Members are able to apply for our new ACCESS loan on the day of joining the credit union. This is a loan upto a maximum of £500 payable over 3 to 9 months at a higher monthly interest rate of 2% (26.82% APR)
How much am I entitled to borrow?
Members may borrow upto 3 times what they have saved, up to a maximum of £10,00. There are no hard and fast rules about how much an individual member is entitled to borrow, subject to terms and conditions. Every loan application is treated strictly on its own merits as each member’s circumstances are unique. It is advisable to have a good record of savings and previous repayments, if applicable, and the ability to repay, before making a loan application.
May I withdraw my savings after taking a loan?
This depends on the amount of the loan balance. Shares in excess of the loan balance are payable on demand. However, if the loan balance is in excess of shares, then the borrower is pledging all paid shares which he/she may now, or hereafter may have in the Credit Union as security for repayment of the loan.