Investing in Oxfordshire Credit Union
What is Community Investment?
Community Investment is a way of using some of your long term savings to benefit the community with the Credit Union. The Credit Union is a co-operative formed on the basis of mutual self help rather than charity. For a credit union to grow and it must maintain its regulatory ratios by also increasing its capital base. This is achieved by retaining profits and/or members making sub-ordinated loans to the OCU. If you make such a loan to OCU you are making a long term commitment to OCU for which you will receive a higher than normal rate of interest (currently 2%). But it will remain your money.
Why should I do it?
For many people, the ability to borrow money can make the crucial difference in being able to replace a broken cooker, fridge or simply being able to buy the school uniforms. More and more people are having to take out loans and a lack of options means that they are often forced to turn to high interest providers. With some well-known payday loan companies charging APR's of 7,000%, these loans cost people a fortune and often leaves people unable to buy basic foodstuffs.
Access to the Credit Union's low cost credit is essential for such people and only achievable if others make community investments. Our loans start from rates as low as just 12.7%apr on the reducing balance and greatly reduces the costs of borrowing for some of society's poorest members. Recent financial analysis concluded that for every £1 we lend to members, they save a full £1.25 over the course of a year in interest payments, bank charges and fees.