East Sussex Credit Union Facts

What is the Credit Union?

The East Sussex Credit Union (ESCU) is a social enterprise regulated by the Financial Services Authority. We aim to provide a high quality, sustainable and easy to access savings and loans cooperative responsive  to the needs of the people of Brighton, Hove, and the rest of East Sussex, and actively combats the detrimental effects of poverty and financial exclusion.

How does it work?

People invest with the Credit Union and we lend this money to people on low incomes who may be excluded from mainstream financial services and who may be borrowing an interest rates of 270% or higher. Most of our loan agreements include a compulsory savings plan to help people move away from indebtedness. Investors receive a share of the profits in the form of a dividend payment. The more successful the Credit Union, the higher the payment, most of which ends up in the pockets of people from the poorest communities. 

Who can join the Credit Union?

Anyone can join who lives or works in Brighton & Hove, or anywhere in East Sussex.

To enable us to continue helping people in East Sussex to manage their finances cost effectively we need local people who are prepared to invest in their community. We do not borrow from banks or other financial institutions. The funds we have available to lend are the savings of other members of the credit union.  Could you be a saver with us?

Your money is protected by the Financial Services Authority in exactly the same way as if you deposited it with a high street bank.  You can invest up to £10,000. We do not pay interest but all members can vote at the AGM on whether to declare a dividend related to the amount of your savings. You can withdraw your funds whenever you choose but while they remain in your credit union account you can rest assured that we will put them to work helping people in your neighbourhood.

Who can borrow from the Credit Union?

Anyone  over 18. All borrowing is dependent upon individual circumstances. We do not apply traditional credit scoring systems and seek to offer loans as a viable alternative to the Home Credit Industry.  

What types of loan does the Credit Union offer?

Save as You Borrow Loans     The typical charge on a £500 loan at 24%APR over 1 year @ £12.5 per week will cost you  £64

·   Members need to save with the CU for 8 weeks before borrowing and can borrow  four  times their savings.

·   A proportion of the repayment - minimum £5/week, is allocated to savings account, so that members will have nearly one third of their original loan amount in their savings account at the end of the repayment term.

·   Loans between £500  and £3,000 are the norm, although we lend up to £5,000

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Any example of a typical loan is given below:

How to join

Prospective members need to fill out a membership application form, pay a minimum of £6 (Inc. £5 membership fee) and include two forms of identification. This needs be something to prove who they are (e.g. letter from the DWP or a passport / driving licence) and where they live (e.g. bank statement, council tax bill).

If applying for a loan we will need the proof of your income dated in the last 2 months (bank statement, payslip, letter from government agency etc)  and filled in loan application form.

Further information

Phone Marta on 07984449304 or email her at marta@credit-union.org.uk.

Main office  tel  no (01273) 234858, email  info@credit-union.org.uk,  The office is located at Community Base, 113 Queens Road, Brighton, and is open 9.30am – 3pm Monday – Thursday and 9.30am – 1pm on Fridays. The Credit Union’s website can be found at www.eastsussexcu.org.uk