Tees Credit Union receives grant from Northern Rock Foundation

A generous grant from Northern Rock Foundation is giving a not for profit lender the capital it needs to expand. Tees Credit Union is a growing community partner that gives new banking options for Teesside residents, many of which have been abandoned by traditional financial firms.

Tees Credit Union serves Tees Valley as well as Durham and North Yorkshire. The institution is well positioned to quickly gain new members. Member deposits are used to expand the loan pool, giving even better borrowing possibilities for those in the community that need to borrow money for basic needs, including emergency utilities, rent and food.

Other Teesside credit unions did not receive the same support that Tees Credit Union is getting. On 24 October 2014 Glen Credit Union as well as Redcar & Cleveland Money Tree went into liquidation. It is possible that many of those members may change credit unions due to the uncertainty of how those firms will be either dissolved or acquired by another firm.

Unlike those failed firms, Tees Credit Union has received an influx of capital thanks to a three-year £150,000 grant. This will allow the organisation to increase membership further so that it becomes a common fixture in Teesside. It is another vote of confidence for an organisation that has served local communities since 1993.

Personal loan products

Tees Credit Union offers loan products that are substantially cheaper than the high street loan rates charged by for profit operators. These can be used for a variety of needs, including to purchase household appliances or to pay emergency living expenses during a household financial crisis.

• Loyalty loans carry no fees, so all members repay amounts borrowed at the standard rate.
• Share loans have a substantially lower interest rate, and the amount available to be borrowed is secured by a member’s actual deposit balance. The cost is partially offset by the dividend paid on savings.
• Payroll savers are eligible to apply for Handiloans which offer quick access to loan proceeds.

Tees Credit Union has also entered into a partnership with Tristar Homes. This relationship allows for tenants of the social landlord to borrow money for appliances and furniture. Tenants should contact Tristar Homes directly at 0300 111 1000 to apply for this White Goods & Furniture loan.

All other borrowers should contact Tees Credit Union at 01642 753517 for loan enquiries. Members and non-members alike are encouraged to make contact. Staff can explain how to join and provide a loan application if the new member would like to request funds right away.

Some loan applicants may receive additional consideration thanks to a partnership with Five Lamps charity of Stockton. By providing additional money advice, members receive the best arrangement for meeting their short-term borrowing needs.

The advantage of the partnership is that existing and new members of Tees Credit Union have access to individual grants or loans depending on circumstances and needs. Credit union representatives often provide a referral for those in seemingly dire circumstances who could benefit from a grant that does not have to be repaid.

Tees Credit Union is located at the South Thornaby Community & Resource Centre on Havilland Road in Thornaby. Enquiries about membership, loans and grant referrals may be directed to 01642 753517.