ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A credit union is a not-for-profit financial institution that accepts deposits, make loans, and provides a wide array of other financial services and products.

Detailed explanation-2: -Therefore, the difference between these two rate of interest act as an income for the commercial bank which is very high that makes the commercial banks, a profit making organisation.

Detailed explanation-3: -A credit union is a self-help co-operative whose members pool their savings to provide each other with credit at a low interest rate. To be part of a credit union you have to share a common bond with other members. This is something you all have in common such as: living or working in the same area.

Detailed explanation-4: -There are a variety of unions, and each is opened for different purposes, such as state employees’ credit union, federal navy credit union, digital federal credit union, Boeing employees’ credit union, etc.

Detailed explanation-5: -Differences Between Credit Unions & Banks Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees.