The philosophy of the Credit Union is human development and brotherhood through people (members) working together for themselves and the community.

A Credit Union is a financial co-operative that is owned and operated by it members. Everyone who is a member owns the Credit Union, all members have an equal say in how the CU is run and each member has one vote. The Credit Union exists to provide for the need of its members by providing the services they need.

How it Works?

Members are encouraged to save, the pooling of members savings will help them and other members achieve financial security. Savings are mainly in the form of shares. Member’s share savings are pooled together, and used as a common fund from which members can apply for low cost loans. The more you save, the more you can borrow. Interest paid on loans is the Credit Union’s main source of income. Income generated is used to provide member services and pay dividends based on members share savings.

All Members of the Credit Union must belong to a COMMON BOND. A common bond is something that all members have in common. In this case the common bond is the London Borough of Tower Hamlets. All members must live and work in the same geographical area or be a relative of and live with an existing member of the CU. Only those individuals who meet the criteria of the common bond can become members.

Who can Join?

• Anyone who fulfils the requirements of the common bond can join the Credit Union.
• Members must be at least 18 years old before they are eligible to take a loan.
• Directors or Officers must be 18 years and over.
• Individuals under the age of sixteen can join as a Junior Savers, and will enjoy the right to save with the credit union.

Other than the restrictions mentioned above, membership is open to everyone once they meet the criteria of the Common Bond.

Benefits of Credit Union Membership

Ownership

All members are owners of the Credit Union

Savings

Used for the mutual benefit of all members (pool of funds from which to provide loans). A well run Credit Union will generate a surplus at the end of the year from the interest charged on loans. The use of the surplus is the member’s decision; usually some is set aside as reserves and once this is completed a dividend could also be paid to Members, which is proportionate to the balance of each members share savings.

Member’s rights

• To inspect the Credit Union’s accounts and reports
• To attend and vote at the Annual General Meeting
• To stand for office in the Credit Union (Board of Directors, Committees)
• To save on one or all accounts and to make withdrawals in accordance with account
• To apply for loans To democratically change the rules and laws of the Credit Union (within the scope of the Law)
• Confidentiality

Responsibilities of Members

• Elect the Board of Directors to run the Credit Union on behalf of its Members.
• Save regularly
• Repay loans on time so that other members can make use of the loan service
• Attend and vote at meetings of the Credit Union.
• Ensure the accounts of the Credit Union are examined
• Provide volunteer assistance.

To promote and encourage the growth of the credit union by encouraging everyone they know to join (once the common bond criteria is met) High membership levels means that more funds are available to loan to members, which will increase the amount of interest income available to the Credit Union to pay dividends on members share savings.