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 Arkansas, as elsewhere, credit unions have evolved into sophisticated financial institutions offering members a variety of services.
Arkansas law restricts membership in a credit union to persons sharing a common bond or association (AR Stat. Ann. Sec. 23-35-401 et seq.). There are detailed requirements for the formation of credit unions and 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.