Published: 13 December 2011

Written by Admin

What is a Credit Union?

A credit union is a financial institution, organized by a group of people to save money and make loans to each other at favourable rates of interest. Credit union members usually have something in common such as their place of work, area of residence, professional organization or social group. A credit union operates on the basis of mutual self-help, hence credit unions typically serve only their members.

Benefits of Credit Union Membership

As a credit union member,

You become part owner of a financial institution.
You are entitled to exercise your democratic right by casting your vote at elections or being elected to any one of the committees that run the organization.
You can access credit in the form of loans at the lowest known rates around.
You are entitled to income tax deductions based on your savings made with the credit union during each year up to a maximum of $3,000 per annum.
When you borrow from a credit union, your savings remain intact so that while you pay your loan, your savings continue to grow. We call this "wealth creation".
You have the convenience of saving by payroll deduction.
Your savings are entitled to Life Savings benefits up to a maximum of $25,000, so that in the event of your death, your beneficiaries will receive your savings as well as other benefits up to $25,000 based on your savings. If death is by accident, this benefit would be double. Plus, a funeral benefit to a maximum of $3,000 in the event of death, based on your savings.
Your family/beneficiary is protected against hardship in the event of death, through the Loan Protection benefits, up to a maximum of $100,000. The loan of a deceased member is automatically written off up to a maximum stated.
In the event of temporary disability, e.g. sprain/broken limbs, the loan is repaid for you for three months up to a maximum of $3,000.
You have the opportunity for personal development by attending and participating in the varied and informative courses, conventions and seminars organized locally, regionally and internationally.
You have the benefit of exposure to the world of business by becoming involved in the management/supervisory/credit committees of your credit union.
Finally, you become one of the millions of persons around the world who participate in this great Movement of Social and Economic Justice.