Credit unions are financial co-operatives that are run for the benefit of its members. The members of a credit union are its owners who put their own money to run it. Money is lent to members who need it. The rates of interest on credit union loans are lower than the rates charged by banks and financial institutions. The profit made by a credit union is distributed among its members in the form of interest or dividend.

Credit unions offer several advantages over banks and other financial institutions. First of all, it is easier to obtain a loan from a credit union. The very purpose of the establishment of a credit union is to offer loans to its members whenever they need. As discussed above, the rates of interest charged by credit unions are very reasonable. The rate of interest charged by credit unions in the UK is 12.68% or less.

You can take out a car loan from a credit union. Since credit unions are non-profit organizations, they offer car loans at highly competitive interest rates. There is no need to shop around for a car loan or to ask the car dealer to offer the car on hire purchase since you can always take out a loan from your credit union. Credit unions usually grant 100% of the car price so that you do not have to give anything from your pocket. Besides interest rate and loan amount, there is another important element of a car loan