A credit union is a member-owned financial institution organized to encourage savings and to provide loans with competitively low interest rates to members. In Louisiana, as elsewhere, credit unions have evolved into sophisticated financial institutions offering a variety of services to members.
Louisiana law restricts membership in state-chartered credit unions to groups of no fewer than 100 people who share a “common bond,” such as the same employer, the same union or benevolent association, or some similar connection (LA Rev. Stat. Sec. 6:645). Because of the complexity of these laws, an organization seeking to set up a credit union needs expert assistance. It is often easier to join an existing credit union than to start a new one.