Penwith Credit Union is calling for more local people to take advantage of its low-cost borrowing.

And at the same time, it is asking for more volunteers to help it expand its services right across the district.

Thanks to nearly £80,000 from Engage West Cornwall, the organisation that distributes money from the Single Regeneration Budget (SRB6), the union has significant funds to invest in Penwith - especially amongst smaller businesses.

Although a credit union offers the same borrowing and lending services as a bank, there are major differences. A credit union is a non-profit, financial co-operative that is owned and managed by its members. By keeping savings in the local area and providing loans for local people it provides a valuable community service, strengthens the local economy and boosts employment.

And unlike a conventional bank, a credit union is not owned by any one person or organisation, but by all the people who use it. It is true 'shareholder democracy' in action.

Members can save with the union too. It's a convenient and safe way to put money away for the proverbial rainy day and is particularly popular with young savers. Because a credit union is a 'not-for-profit' organisation, surplus funds are distributed to savers in the form of a dividend at the end of the year.

"We currently have in excess of £38,000 on loan to local individuals, companies and other organisations," said Penny Cumming, the Union's Project Manager, "and we expect a surge of interest in our lending facilities at the start of this new year - especially as bank interest rates are continuing to rise."

Volunteers needed
The Penwith Credit Union is now operating in Penzance, St Ives and Hayle and has recently opened a collection point in St Just. More volunteers are needed to help spread the service even more widely.

"We offer training for volunteers in a number of areas," explained Penny, "so there is the opportunity for them to learn a range of financial and business skills as well as helping to provide this valuable resource to the local community."

The objectives of the Credit Union are to encourage members (in other words ordinary, local people) to save regularly, to provide them with low-cost loans and to encourage them into careful money management. There are wider objectives as well, including contributing towards the alleviation of poverty within the community and helping with its economic regeneration.

"Credit unions are now widespread in the West Country," said Anne Nicholls of Engage West Cornwall. "They are making a big difference to local communities and businesses and, by providing initial grant funding, Engage is helping to start up several in Cornwall."

Engage has been helping people of all ages and backgrounds to make a difference to their community for the last four years. Engage is also able to give free advice on potential projects and a swift decision on whether an idea is eligible for SRB funding.

Applications must be made through a community group and those who have ideas that they would like to develop should consider a partnership arrangement with a suitable organisation. Projects must obtain 'match funding' from a source other than Engage.

Anyone who is interested in becoming a volunteer with the Penwith Credit Union, or who is interested in its saving or borrowing schemes, should call 01736 366200 or email office@penwithcreditunion.co.uk.