FAQs

The Community Banking Project will create a partnership between Barking and Dagenham Council and a credit union to provide affordable lending options as well as savings services. To ensure the products and services being offered are useful to the residents of Barking and Dagenham we will be creating a network of residents to help keep this project grounded.

Barking and Dagenham has approximately 9.7 million in subprime loans taken out every year. A subprime loan is a loan given to someone with a poor credit history, because of this it is likely to have a higher interest rate. The community bank will be aiming to improve the affordability of credit for those with a poor credit history and provide savings options to improve credit.

Credit unions are created, owned, and operated by their participants. Members pool their money through savings to be able to provide loans and other financial products and services to each other. Any income generated is used to fund projects and services that will benefit the community and the interests of its members, as they are not-for-profit organisations.

It is not possible to simply join any Credit Union. Membership has to be between people who share what is called a ‘common bond’. For the Barking and Dagenham Community Bank people who live or work in the borough will be able to join.