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Credit Unions keep their distance
We all know there is volatility and turmoil in financial markets at present and it is believed the current crisis in the Eurozone will likely bring about less funding from UK banks for loans.
With the probable need for UK banks to write off debts from Greece and possibly other EU countries, they may have fewer funds to lend out on mortgages and other loan products. There are also signs that the current crisis of confidence is causing money to be withdrawn from the European financial system, having the same potential effect.
Police Credit Union, however, like all credit unions with their own closely targeted common bonds and restrictions on where funds may be deposited, is not involved in the European financial system. It only lends money lodged with it by savers from the police family to other members of the police family, depositing surplus funds in the UK system, far away from Europe and stocks and shares.
It currently has adequate funds available to meet even the highest anticipated demand and can lend to eligible borrowers at rates considerably lower than can be generally found on the high street, especially for amounts up to £7000 or so.
The current discount offer of 8% representative fixed APR on fixed rate unsecured loans is an extra way for the police family to benefit from having a credit union dedicated to serving just the police family and those associated with it.
PCU also offers, at no extra cost to members, free life cover, which pays off any outstanding loan balance in the event of death of a member up to age 65 and doubles the savings balance for those left behind.
The credit union sector is growing in the UK and it may be of interest to learn that there are 425 credit unions in Britain, with over 920,000 adult and junior members. Savings balances were over £673 million in March 2011, according to the Financial Services Authority. Outstanding loan balances were over £586 million.
The sector is still in its infancy in Britain, with over 53,000 credit unions worldwide and 188 million members.
PCU and the other UK credit unions have a lot of developing ahead. Growth, however, will not be at the expense of the credit union ethos of “ people helping people “ through strong but simple principles of financial operation.
For more information about Police Credit Union and their services
Tel: 0845 241 7501
or visit:
www.policecu.co.uk
