A credit union predicted to be one of the largest in the country will be launched in Coventry within a few weeks.

The Millennium Credit Union is expected to attract several thousand members to take advantage of its financial services.

Credit unions are community or work-based savings and loans schemes that are owned by their members. Membership is open to all those who live or work within the boundaries of the credit union including those who do not have a bank account or who are considered a credit risk.

Members demonstrate that they are a good risk by saving as much or little as they can afford regularly over 12 weeks. They can then apply for a loan, based on their savings, to be paid back over one or two years.

Mike Hoyland, Credit Union Development Worker, who is playing a leading role in its formation, said:

"We expect to be open for business in August when formal clearance arrives from the regulatory body, the Financial Services Authority.

"We are in the process of being registered by the FSA and I see this new credit union as providing a major boost for the other credit unions in the city."

Bret Willers, Area Co-ordinator South West Coventry, said:

"Groups of local people from Tile Hill, Canley, Earlsdon and Spon End are working together and forming a credit union which covers a much larger area with the opportunity to generate greater financial resources.

"We think that the Millennium Credit Union has the potential to become one of the largest in the country.

"It is for everyone, whether they have high or low incomes. It will help local people who cannot afford the high rates of interest charged by some loan companies and who may fall prey to loan sharks.

"Local companies can help to promote the Millennium Credit Union as a service to their employees, who can save through their company payroll without even having to leave the building."

Councillor Joe Clifford (Woodlands) said:

"There are lots of us who take for granted the use of everyday banking facilities without realising they are not available to a large section of the community.

"One of the benefits of a credit union is to bring those sort of facilities within range of a lot of people who do not have them now. A lot of volunteers have worked hard to get the Millennium Credit Union off the ground and I am grateful to them for that. It really is a smashing idea which will help people in Coventry."