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 Rhode Island, as elsewhere, credit unions have evolved into sophisticated financial institutions offering members a variety of services.
There are detailed requirements for the formation of credit unions (RI Gen. Laws Sec. 19-21-1et seq.). 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.