Pioneer Mutual Credit Union’s Ethical Loans Recognised in Parliament
09 Nov 18
Last month, Pioneer Mutual Credit Union was recognised in Scottish Parliament for its “responsible approach to borrowing” and presented with its motion by Tom Arthur MSP at their office in Barrhead.
Pioneer Mutual was congratulated for its work in the community and its ethical loans to members;, which ensure that wealth is retained in the community rather than going to high interest payday lenders.
The motion presented to Pioneer reads: “The motion welcomes the responsible approach to borrowing which uses a loan calculator and only charges interest on the outstanding balance, rather than the full amount borrowed, and encourages people to join their local credit union and benefit from not-for-profit services that encourage saving what you can and borrowing only what you can afford to repay”.
Chief Executive of Pioneer Mutual Credit Union, Stephen Walsh said: “We are delighted to be recognised by The Scottish Parliament, as this demonstrates the vital role credit unions play in their communities. The Pioneer Mutual team are always striving to enhance the member experience, and our loan calculator ensures that our members have a clear repayment plan can pick a loan to suit their financial needs”.
In 2016-2017 Pioneer lent members’ £2.4 million charging interest of £338,867, a payday lender would have charged interest of approximately £27,022,408; which in turn resulted in £26,683,541 of wealth being retained in the community. Its loan interest is calculated on the reducing balance, so you pay interest on what you owe not what you borrow and that’s part of the credit union difference.