﻿ Save'n'borrow. Stroud Valleys Credit Union

What is  a Credit Union?



What is a Credit Union?

A Credit Union is a profit sharing, democratically run financial co-operative which offers convenient savings and low interest loans to its members. The members own and manage their credit union themselves.


The three main aims of a Credit Union are:


What are the benefits of a Credit Union?






How do Credit Unions work?

The members make regular savings, as little or as much as they wish. These savings then form a common pool of money from which loans are made to members. When members have been saving for a certain period of time (usually about 12 weeks) they can apply for a loan from the pool. Interest on the loan is charged at only 1% per month on the monthly reducing balance. 12.68% Annual Percentage Rate (APR). Or they can apply for a loan without having saved up but the interest then charged is 2% per month (26.8 %APR)


Who can join a Credit Union?

If you live or work in the Stroud District Council or the Tetbury areas you will be welcome to join.



Credit Unions have to be registered by the Financial Conduct Authority (FCA) and are regulated by the Prudential Regulation Authority (PRA) and the FCA. The officers of the credit unions have to be approved and registered by the FCA.


Credit unions are covered by the Financial Services Compensation Scheme which compensates for losses of members’ shares (savings) up to £85,000 if the credit union should be declared default.

Guide to how the Financial Services Compensation Scheme (FSCS) protects your money.


Credit unions must comply with the Credit Union Act 1979.


Credit union accounts must be audited annually by a qualified auditor and be insured against fraud & theft.