Question

a) How do credit unions differ from savings institutions?

b)How and why is credit union membership limited?

Answer 1

A) Credit unions are different from the back because Credit union are non profit organisation where as banks are primarily profit making organisation and their main incentive is to make profits

credit unions will be offering the loan at lower rates whereas bank will be having a higher interest rate.

credit union generally have a fewer branches and your products which are offered to the customers whereas bank will have a large amount of bank branch and large amount of product

banks will generally be offering more services like online offering of services and 24 *7 services whereas credit union service offering are limited in nature.

B) The membership of credit union are very limited in nature and they are providing the services to the limited number of people because the membership of credit union will be dependent upon communities, and it will also be dependence upon various cultures, caste, creed, religion and it will be offered to public based on that specific criteria and not every person can take membership of these credit unions so number of credit union membership are limited in nature.