Credit unions

Information about and how to register for credit unions

Liberty Credit Union

Savings and loans designed for you.

Liberty Credit Union is a financial organisation that encourages its members to save and borrow responsibly. It is a good alternative to banks, building societies and high interest loan providers. It offers low cost finance with a community ethos.

Liberty Credit Union is open to anyone who lives or works in Barking and Dagenham, regardless of income, employment status or age. If you are looking for easy convenient ways to save with access to low cost loans, then it could be right for you.

Liberty Credit Union aims to provide local financial solutions and can present a real alternative to pay day loans and doorstep lenders. Loan rates start from £6.60 for every £100 borrowed (conditions apply).

The main aims of Liberty Credit Union are:

  • to encourage its members to save regularly
  • to provide loans to members at very low rates of interest
  • to provide members with help and support on managing their financial affairs

The benefits of a credit union are:

  • it is easy and convenient way to save and borrow
  • it offers very low cost loans
  • insurance at no direct cost
  • a credit union can help to revive the local economy by keeping money in the community. Loans to members can mean income for local shops and businesses

Membership and how it works

With a credit union you save whatever you can afford, as little or as a much as you wish, whether it’s £5 a week, £1 a week or 50p a week. The only requirement is that you save regularly.

Most credit unions expect you to save regularly for about 12 weeks before allowing a loan and any loan will be related to your savings in some way. The amount you will be able to borrow will depend on how much money you need, what you can afford to repay and the credit union’s policies.

People who join a credit union must belong to what is called a common bond. This could be that you reside in a specified area, you work for a particular employer or that you are a member of a club or association. Credit unions welcome everybody from within the common bond regardless of income, employment status or age.

Liberty Credit Union has branches in Barking and Romford, where you can access your money. Alternatively register online, to check balances, view statements and transfer money.

Register online

As a credit union grows, it may declare a dividend at the end of the financial year. It can pay a dividend of up to 8 percent a year, although it will be unlikely to be able to afford as much as this during the first few years.

Insurances:

  • credit unions are insured against fraud and theft
  • they provide life and loan protection insurance at no direct cost to the member payable to a nominated beneficiary
  • the life savings insurance means that if you die, your beneficiary can receive up to twice the value of your shares
  • the loan protection insurance covers the amount of your loan outstanding