Important Financial Institutions Of The Country

Credit unions, using the example of Trademark Credit Union, are competitors of savings institutions, charging interest on members' deposits. This applies to both unit contributions and additional funds credited to accounts with the credit union.

In accordance with their purpose, credit unions have the main share of assets concentrated in loans (about 50%). Members of credit unions place in credit unions, as a rule, free balances of funds, i.e. those that remain after expenses intended for the education of children, the purchase of new real estate, additional pension provision, etc. Organizations often practice automatic deductions from employees' earnings to accounts in credit unions.

The main task of unions is to provide loans to members at the expense of their own savings. Credit unions carry out mainly consumer lending, i.e. they provide loans for non-productive purposes.

Photo by RDNE Stock project from Pexels

Share this Post