WHAT IS A CREDIT UNION?
A credit union is a voluntary self-help organization of people, united by a common bond, who agree to save their money together and give loans to one another at competitive rates of interest for both productive and provident purposes.
WHAT IS A COMMON BOND?
A Common Bond is that pre-existing condition which causes the members of a group to associate together, to know each other, to have common interests and purposes and are consequently willing to work together to achieve or accomplish group objectives. A group has a common bond when the members attend the same church, or have the same employer, or live together in the same locality or vicinity.
Any group of people united by a common bond may form a Credit Union. Some examples are:
- Persons living in the same community
- People in the same profession, such as teachers, nurses, or artisans
- People in the same church, group, association or working for the same organization, such as Valco, Ghana Broadcasting Corporation or a Mining Company
- To encourage the habit of regular savings among its members
- To provide credit or loans to its needy members at competitive interest rates
- To educate its members in the management and wise use of money
- To create opportunity for members to care for one another
- To create opportunity for members to express concern for the community
There are several advantages to be derived from being a member of a Credit Union. Some of the benefits are:
- Cultivating the habit of savings regularly
- Easy access to loans at minimum rates of interest
- Financial counseling from Credit Union experts
- Receiving dividends, interest and rebate from the Credit Union
- Enjoying benefits from life savings and loan insurance schemes
- Enjoying the fruits of good neighborliness