Credit unions are financial cooperatives owned and controlled by its members. Credit unions are committed to improving the social and economic well-being of its members by providing low cost Money which has to be returned to the lender usually with interest. Loans vary in size and in repayment terms and encouraging savings. They give Money which has to be returned to the lender usually with interest. Loans vary in size and in repayment terms at low A fee paid by a borrower of money to the lender as a form of compensation for the use of the money. Interest is not 'Profit'. Interest is paid to a lender, profit is paid to an owner. Interest is usually expressed as an annual % of the 'principal' or sum owed to the lender It is calculated as a % of the principal, over an agreed period of time. Interest Rates are market prices for loans determined by supply and demand. Interest is often calculated on a compound interest basis, where interest is earned on prior interest in addition to the principal sum borrowed. See also - Variable Interest & Fixed Interest to everyone but also those who might struggle to get a loan elsewhere. Account holders are expected to save money whilst simultaneously repaying a loan. In order to be a member an account must be opened and the credit union criteria has to be met. This criteria is normally specific to the postcode or area where the person is living or alternatively to where the person is working.