People's bank blooms as recession bites

A 'people's bank' has seen a huge surge in its number of Lincoln savers in the last two years.

The Lincoln Credit Union was formed in 2001 and until the credit crunch hit in 2007, had just 350 members.

But the effects of the global financial crisis on individuals and an office open five days a week next to St.

Peter-at-Gowt's Church in Lincoln's High Street have been credited for the organisation's booming membership of 1,200.

And tomorrow the co-operative is launching a new weekly collection point where members can make deposits at the Abbey Access Centre in Monks Road.

From 11am to midday each Wednesday savers and borrowers can tend to their finances in the community building.

Linda Burden, Lincoln Credit Union's development officer, said: "We are reducing the barriers people have to easier finance and provide a viable alternative to loan sharks.

"We have had people depositing large sums of money with us as they are not happy with the banks at the moment.

"I think our success hasn't been just due to the economic downturn but to the visible presence of our office at the lower end of the High Street.

To become a member of the Lincoln Credit Union, a saver needs to make a minimum deposit of £1.

They need to save for a minimum of 12 weeks before they are able to borrow twice the value of their savings.

No credit reference is required and the first loan can be up to the value of £500 which can be borrowed at a 1 per cent interest rate on a reducing balance. An annual dividend payment is made to the saver.

There are existing collection points in the city's Moorland, Birchwood, St Giles, Park and Ermine East and Ermine West wards.

For more on the Credit Union, see Tuesday's Echo.