Derbyshire non-profit bank helps poorer people borrow money
A community bank which helps people in Chesterfield and North East Derbyshire manage their finances has outlined its plans to provide continued support for years to come.
Chesterfield and North East Derbyshire Credit Union Ltd’s (CNEDCU) business plan outlines its projected financial position to September 2024.
The union, which is a non-profit organization set up to provide affordable banking services such as the Family Loan Scheme, Christmas Club and Payroll Deduction Scheme, had 4,748 members on its books in September last year with shares totaling £684,753.
Read more money stories
In the 2022/23 financial year, the union expects income of £219,050 taking into account loan and grant interest, and expenditure of £219,000, which covers staff, premises costs and fees professionals – leaving an excess of £50.
In 2023/24 the union expects an income of £223,100 with expenditure of £221,750 and a surplus of £1,350. As of September 2021, 1,221 loans were outstanding with CNEDCU totaling £528,858, while its Junior Savers Scheme had a total of 1,092 young members with savings of £59,501.
A report explaining the union’s current position stated: “The youth savers scheme remains one of the largest in the country and is supported by a grant from local authorities. The board believes that the lessons learned by savers and, in some cases, their parents deserve continued support, even if in the short term it will put the credit union in deficit.
The report added, however, that it would be a low-risk move while other revenue streams were developed. The business plan said the targets set were “realistic and achievable”, but acknowledged the challenges it faced due to the current economic climate and the lasting effects of the Covid-19 pandemic.
Read more stories about education in Derbyshire
To see all the biggest and best stories first, sign up to read our newsletters here