Nottinghamshire County Council is to give a £20,000 grant to Nottingham Credit Union (NCU), so more people in Mansfield and Ashfield can take advantage of savings accounts and affordable loans.
Around 540 people in Mansfield and Ashfield currently use the credit union but it needs to recruit over 1,000 more members to make a local service viable.
Saving regularly with a credit union is particularly beneficial for people on low incomes, by offering them access to affordable loans a chance to save and learn about better money management.
Mansfield councillor, deputy leader of Nottinghamshire County Council, Coun Joyce Bosnjak, said: “In many areas where there are a lot of low income families, pay day lenders have been meeting the demand for small loans - often charging extortionate interest rates.
“By helping to raise the profile of the credit union in Mansfield and Ashfield we want to make the service self-sufficient and provide an affordable alternative for local people that also promotes saving and better money management.
“A thriving credit union is also good news for the local economy.”
For information about call 0115 828 3121 or visit www.nottinghamcu.co.uk