The recent award by Engage West Cornwall of a Single Regeneration Budget (SRB6) grant has helped establish The Kerrier & The Fal Credit Union - a community "bank" for people who live or work in Kerrier, Falmouth, Penryn and Mylor Parish.

The culmination of four years' hard work by volunteers, this £68,346 grant from SRB6 has been added to a grant from the Neighbourhood Renewal Fund, and other financial support from Kerrier District Council, Cornwall County Council, Kerrier Healthy Living, The Church Urban Fund and Penwith Community Chest, as well as parish and town councils, to achieve their goal.

The next step is for the proposed credit union to be authorised by the Financial Service Authority. This approval is expected shortly.

For anyone unfamiliar with the idea, 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 projects, businesses and individuals it provides a valuable community service, strengthens the local economy and helps employment. Unlike a conventional bank, a credit union is not owned by any one person or organisation, but by all the people who use it.

The objectives of The Kerrier & The Fal Credit Union are to encourage members - ordinary, local people - to save regularly, to provide them with low-cost loans and to encourage them into careful money management. Wider objectives include contributing towards the alleviation of poverty within the community and helping with its economic regeneration.

At present the credit union operates a savings club at the Guinness Trust Centre in Illogan (every Thursday, 10am to 1pm) and by mutual arrangement. Negotiations for a further service point are under way. However, as the organisation develops, more service points across the district will be opening. These can be based anywhere, providing there are volunteers willing to train and work in them.

The benefits to the local community will be considerable. Anyone over the age of 16 can join and anyone over 18 can take out a loan or become an officer of the union. The union will offer a convenient and safe way to save (from as little as £1 per week) and any surplus money is returned to members each year as a dividend.

One of the biggest benefits of credit unions is that they offer a low-cost borrowing facility to members. They are an effective alternative to banks and high-interest money lenders.

"We are so pleased that the Engage funding has allowed our credit union project to go ahead," said Treasurer Laura Fay. "Credit unions have a proven history in the South West and elsewhere and I know this one will be of real benefit to local people."

At present there are three credit unions up and running in Cornwall, with a further two proposed in North Cornwall and Restormel, along with the new Kerrier and The Fal Credit Union. Thus the whole county will now benefit from this fast expanding financial service.

"We are delighted to be helping this immensely worthwhile community scheme," said Anne Nicholls of Engage. "The Engage Neighbourhoods programme is particularly targeted at individuals, neighbourhoods and groups who have so far had limited chances to be involved in community and social opportunities. This is exactly the sort of project that will make a real difference to the lives of people in Kerrier, Falmouth, Penryn and Mylor Parish."

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 also obtain 'match funding' from a source other than Engage.

"As the Engage Neighbourhoods programme continues to develop we will see improved conditions for local people, more employment opportunities and an increase in community activity and pride," explains Anne. "We are working in partnership with the many organisations 'on the ground' who are presently doing much good work across the region."

Anyone who is interested in becoming a saver with The Kerrier & The Fal Credit Union, having a service point in their ward, village or community, or helping as a volunteer, should contact the Membership Secretary on 01326 373313.