Introduction
Let’s start our discussion by understanding the purpose and structure of the Credit Unions. Credit unions are made to give financial support to its members. so that every member may be able to have a financial support in the time of need. Financial organizations are basically designed to support adn provide all the necessary needs to a person related to his finances. Where the world is getting advanced day by day, need of union federal credit department is increasing.
Step 1
The structure of credit unions is not much complicated because it is based upon the members of the credit unions. So it can be said that the credit Unions are the setups of the members and for the members.
Step 2
Federal Credit union was also formed to provide support to the members of the union. This support can be provided in the times of need. The work of the Federal Credit unions is based upon the fact that the members of the federal credit union, strive to help each other and to get the help in return, in the hours of need.
Step 3
Federal credit Unions provide the same services as the bakes would provide to an individual. However the federal credit unions are better as compared to the banks, because these unions are owned by the memers.The second difference between the bank the federal credit union is that, the banks are formed foot purpose of making the profits, However in case of federal credit unions, the purpose is not profit making and they not for profit organizations. These unions are formed by the members in order to help eachother.In this way they differ from the banks and can be proved much flexible and reliable as compared to the banks.However any profit earned by the federal credit unions is distributed amongst the members of the union. The federal Credit unions can also be regarded well as compared to the banks because these unions are able to provide the credits and loans to the members at much lower rates.
Features
These federal credit unions provide different types of the loans to its members. These may include Auto loans, Home Loans, Holiday loans, Business loans and many other types of loans in the times of need.Other than loans federal credit unions can also provide other services like phone banking, direct deposit, visa credit card options, online bill payments etc.Hence the Federal credit unions provide so many facilities to its members and the members of such unions can enjoy the support of these unions. They can rely on these unions in the hours of need.
Comments
Since, these unions are formed by the members of the union, this gives a sense of ownership to the members of the union and the members may not compromise on the goal congruence while working for those unions because in that way there are likely to be working for their own selves.However it can be concluded, that federal credit unions can compete with the banks and the members can enjoy much more flexibility by relying upon the federal credit unions.
