What is a Credit Union?
It is a community owned savings and loans co-operative. Like a bank, it is authorized and regulated by the Financial Services Authority. You can make regular savings, no matter how small, into your account AND take out very low cost loans should you ever need to!
Who runs it?
A Credit Union is owned and managed by its members. It is a non-profit-making community enterprise, run by local people for the benefit of local people.
ROMCUL's organizational structure is based upon the standard ABCUL model.
Who can join?
You can join if you live in the catchment area of the Credit Union (its "Common Bond").
Is my money safe?
YES! The Credit Union is insured against theft and fraud and is regulated by the Financial Services Authority. There are strict legal guidelines on how it is run, with regular audits and controls.
How much can I save?
As much or as little as you wish. The Credit Union is there to help you make regular savings so that they build up into a sizeable sum. You can come into your Credit Union office or save by standing order.
Can I withdraw my money?
Yes, but we may need a few days notice. Very large sums might take longer. Most members however prefer to keep their savings intact and growing, taking out a loan instead. This ensures they remain eligible for future loans and dividends. They also keep their life assurance benefits intact.
Do I get any interest?
All members own the Credit Union and share in its success. Instead of interest being paid a dividend is given at the end of each year when there is a sufficient surplus. The more savings that you have, the more dividend you earn. At present the law allows Credit Unions to give up to an 8% dividend on your savings.
Who can apply for loans?
Anyone who is a member, is 18 or over and has been saving regularly with the Credit Union for at least 3 months, may apply for a loan. The Credit Union is there to get you into a savings habit. If you can show that you can save regularly it indicates that you can repay a loan regularly
Is my business private?
Totally. All officers and collectors abide by strict rules of confidentiality.
What about insurance?
Members' savings and loans are covered by FREE insurance (depending on age). If for example you have an outstanding loan and you die, your family does not pick up the debt. This insurance cover is considerably more expensive with other financial providers. Banks for example can charge up to 20% more for insurance on their loans. Watch out for those hidden costs. With the Credit Union you are secure in knowing that there are no hidden charges.
How much do loans cost?
Compare our rates with anywhere else! We charge a maximum of 2% per month (26.82% APR) on the reducing balance, AND there are no hidden costs or extra charges.
For example if you borrow £100 over 6 months you pay back £106.56 (compare that with a bank loan!). And of course all that money goes back into your Credit Union.
Try the loan repayment calculator to work out how cheap we are on the sort of loan that you might require.
Can I choose the repayment period?
It's up to you to decide how much you can afford to pay and for how long. First loans have to be paid back over a maximum of 12 months but subsequent loans may be repaid over two years, so your loan could be for two weeks or for a year or more. The table below gives some examples of loan repayments over 12 months.
| Loan | Total interest | Total amount | Weekly repayments |
| £100 | £6.56 | £106.56 | £2.05 |
| £300 | £19.80 | £319.80 | £6.15 |
| £1000 | £66.32 | £1066.3 | £20.51 |
Are there any penalties if I want to pay off my loan early?
No, none at all.
Who works in the Credit Union?
The Credit Union is run by volunteers drawn from its members. It also employs paid staff for certain specific roles (development, office management, etc.). If you want to be involved there is always something interesting to help with. There is training available for all volunteers. The more complicated the job in the Credit Union the more training there is available. As a volunteer you can also get Credit Union qualifications that will help you with your job prospects.
How do I become a member?
It's easy, just visit the office during opening hours. It costs two pounds to join for life. You can then open up a savings account with as little as a pound, and start enjoying all the benefits of being a member.