KENNET residents tired of banks will welcome the news that the district may be getting its own credit union.

Credit unions are community banks run by and owned by their members to provide a safe, easily accessible place for savings. They offer low cost loans in times of need through members pooling money to provide funds for granting loans.

One is already up and running in Calne with 130 members, while one in Swindon has just paid out a four per cent dividend to its members.

Sarah Perkins, the credit union development officer based at Community First in Devizes, has already met with people interested in setting up a voluntary bank in the district.

She said: "The beauty of a credit union is that it encourages people to save and to budget by spreading their payments. They appeal to people from all walks of life.

"It is designed to serve people who want to save together and lend money to each other.

"Obviously, you have to save before you can borrow, but the advantage is you can borrow small sums of around £50 while the minimum a bank will lend you is in the region of £500."

The loans offered by credit unions are very cheap, the rates of interest being fixed at around one per cent per month.

Setting it up will not be cheap, but there is National Lottery funding for the movement nationwide and the schemes attract support from local authorities.

Ms Perkins said: "People have been very generous, especially district councils, town councils, Citizens Advice Bureaux and so forth. They usually cover stationery and photocopying costs."

The Calne credit union began trading in November 1999 and is now looking so viable that there is talk of extending it to other parts of North Wiltshire district.

Those interested in setting up a credit union in Kennet and would like to know can attend a meeting at Community First's headquarters in Wyndhams, St Joseph's Place, Devizes, on May 28 at 7.30pm. Alternatively, call Sarah Perkins on (01380) 722475.