Organisational Structure
What is a Credit Union?
A credit union is a voluntary self-help organization of people, united by a common bond, who agree to save their money together and give loans to one another at competitive rates of interest for both productive and provident purposes.
What is a Common Bond?
A Common Bond is that pre-existing condition which causes the members of a group to associate together, to know each other, to have common interests and purposes and are consequently willing to work together to achieve or accomplish group objectives. A group has a common bond when the members attend the same church, or have the same employer, or live together in the same locality or vicinity.
Formation of a Credit Union
Any group of people united by a common bond may form a Credit Union. Some examples are:
- Persons living in the same community
- People in the same profession, such as teachers, nurses, or artisans
- People in the same church, group, association or working for the same organization, such as Valco, Ghana Broadcasting Corporation or a Mining Company
Aims of a Credit Union
- To encourage the habit of regular savings among its members
- To provide credit or loans to its needy members at competitive interest rates
- To educate its members in the management and wise use of money
- To create opportunity for members to care for one another
- To create opportunity for members to express concern for the community
Advantages of Credit Union Membership
There are several advantages to be derived from being a member of a Credit Union. Some of the benefits are:
- Cultivating the habit of savings regularly
- Easy access to loans at minimum rates of interest
- Financial counseling from Credit Union experts
- Receiving dividends, interest and rebate from the Credit Union
- Enjoying benefits from life savings and loan insurance schemes
- Enjoying the fruits of good neighborliness
All Credit Union members meet together once a year at an Annual General Meeting, where they elect their Committees from among themselves and make decisions regarding the Credit Union. The members, therefore, own and control their Credit Union.
Credit Union Network
The Credit Union (CU) concept is a global entity with societies linking up from the National level (NA) to the continental and then to the global.
