A Credit Union is a not-for-profit financial institution dedicated to serving the needs of its members.
Credit Unions are made up of people with a common bond, something that draws them together, for example, where they live or where they work. They are governed by a Board of Directors, elected by and from it's membership.
When someone joins a Credit Union, they open a share account (savings).It is called a share account because the individual becomes part owner of the credit union. Loans are given according to a member's regular savings, not on the source or the amount of their income.
Credit Unions are able to offer reasonable interest rates on loans as much of the work is done by volunteers, keeping running costs to a minimum.
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.