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What Is A Credit Union?
Who can join a credit union and how?
Is it democratic? Can it be bought out or taken over? Is it ‘Regulated’ in any way?
Can the people running it be trusted with the money of others?
Is there an investment return on my savings?

How does a Credit Union trade?

How are loans applied for and how much can be borrowed?
How much can be borrowed?
Are those with previous poor credit records able apply for a loan?
Complaints - how are these dealt with?
What makes credit unions work the 5 Ps
Whats in it for the owner-members?

How are loans applied for and how much can be borrowed?

A loan application form is completed, requesting personal details to establish the ability of the borrowing owner-member to repay the loan.

Many credit unions have an “on-line” facility available to owner-members, using a personal identity number to apply for a loan remotely and in private. An owner-member can apply for a loan from the credit union for any “prudent and provident” purpose, and that includes a business purpose.

As part of the loan application, most credit unions have the right to carry out consumer credit searches on loan applicants. Every loan application made by an owner-member is underwritten (considered) by the credit union management; assistance and further information (not advice which is a regulated activity) can be given to the applicant. Sometimes, more assurances are required from the owner-member before a loan is granted. 

Obviously, this treatment of every loan application is fair as the credit union has a duty of care when lending out the savings of the other owner-members to ensure that the borrower can repay the loans in full, by instalments and on time.


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