Press Release Summary: Credit Unions are gaining popularity as the alternatives of Banks and high street lenders due to the tight credit situation.
Press Release Body: London (online-unsecured-loans) July 01, 2008:Credit Unions are replacing the High Street banks and building societies as the latter are tightening their lending criteria in the wake of the global credit crunch. The credit Unions have become the lending resorts for an increasing number of Britons. The Government has also announced several proposals to allow more flexible membership of credit unions in the last week. Currently members of the credit union need to share a common bond, such as living in the same area or working for the same employer. Liberalising this clauses will definitely open the floodgates for more savers and borrowers to join credit unions.
As a common practice,borrowers generally check out the loans available at their local credit union. However due to their week penetration and orthodox way of functioning, credit unions were mistaken as a saver\'s hub by many. At this point they lacked the aggressive marketing and advertisement policy of the commercial banks. No doubt, the credit unions offer affordable loans with low and transparent interest rates. Most of them charge a mere 1% interest per month . Due to some tougher clauses and lack of Government patronage, these safe and accessible options were unable to garner popularity.
Credit unions, came to the complete control of Financial Services Authority since 2002. They are run by members purely for their benefit. There are more than 500 credit unions across the country, managing about £500m of members\' savings. These financial organisations are expected to grow in the popularity chart as more borrowers are forced to seek alternatives for credit in the coming years. The larger credit unions are planning to offer mortgages to members.
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.online-unsecured-loans.co.uk
2022
