Merton has been granted permission to form a credit union, giving residents help in saving money
By Reaz Kurimbux
Merton residents will soon have help in saving money, as the borough has been given the green light to form a credit union.
The Financial Services Authority (FSA) has given permission for the Croydon Savers Credit Union to extend its services to Sutton and Merton.
Credit unions aim to help members save money rather than borrow. They provide low cost loans at times of need and people can register for the service now.
Councillor Stephen Alambritis, leader of Merton said: “This will encourage residents to save whilst offering them attractive deals on loans in these difficult economic times.”
Credit union members are encouraged to save a small amount of money every week or month to help them get into a routine of saving and become more financially secure.
Should they then wish to borrow money, their savings record would benefit their loan application.
The granting of loans is based on the applicant’s ability to afford repayments rather than employment status or previous credit history.
As the union is run by members, they are more flexible and understanding of the needs of borrowers at times of financial stress.
Pauline Ford, Managing Director of Merton Priory Homes, said: “This is great news for residents who will have a more palatable credit alternative to consider against high interest rates and loan sharks.”
Membership is open to anyone aged 16 or over who live, work or study in Merton.
To download membership forms, go to www.circleanglia.org/merton-priory-homes/.
For more information, call 0300 500 3000.