TWO Cumbrian credit unions have been given the green light to merge.

The Financial Conduct Authority has announced it approval for the Affinity Credit Union to combine with the Eden and South Lakeland Credit Union.

The newly merged credit union will trade as Affinity and membership will be open to anyone who lives or is employed in the county.

Chair of the new Affinity board, Martyn Evans, said: “Credit unions are owned and operated by members for the benefit of members.

“We have a long history of supporting local communities.

“The merger puts Affinity on a firmer footing and enables us to continue offering a lower cost alternative to loans.

“We are taking steps to cope with the impact of the Covid-19 crisis on our organisation. We are working hard to serve members during these very unusual times.”

Credit unions are co-operatives which are run by their members, for the benefit of their members.

Any profits are invested back into the organisation or paid out, as a dividend, to all the members - unlike banks whose profits go to their shareholders.

It offers easy access savings accounts and loans to members at competitive rates of interest.

Historically, the credit unions have relied on grants to help sustain their ongoing operations.

With grant funding disappearing, the new board is seeking to create a larger, more financially sustainable organisation which it claims will mean better returns for members with savings and more competitive loan products.

Under the coronavirus restrictions, it continues to serve its members with restricted face-to-face contact but will reopen branches in Cleator Moor, Kendal, Maryport, Penrith and Workington after lockdown is lifted.

For information, go online to www.affinitycu.co.uk.