In the UK, credit unions are a source of financing of people groups. This tool is not widely used. In the U.S., credit unions have a clear organizational structure. All credit unions belong to one or the other parent credit union (there are 35 of them in the U.S.). In the credit union compensation for use of the loan (interest) is a source of compensation for savings. The relationship between credit unions and shareholders arise from the membership and are not customer relationship. Borrowing rate for the credit union is a source of income to cover the administrative costs. All excess funds are returned to members in the form of dividends on savings.
In the credit union compensation for use of the loan (interest) is a source of compensation for savings. The relationship between credit unions and shareholders arise from the membership and are not customer relationship. In the U.S., credit unions have a clear organizational structure. All credit unions belong to one or the other parent credit union (there are 35 of them in the U.S.).