Krediidiühing

Krediidiühing is an Estonian term that translates to credit union. A credit union is a member-owned financial cooperative, similar to a bank, but operating on a not-for-profit basis. Membership is typically restricted to individuals who share a common bond, such as belonging to the same employer, profession, community, or organization.

The primary purpose of a krediidiühing is to serve its members by providing a range of financial services. These services commonly include savings accounts, checking accounts, personal loans, auto loans, mortgages, and credit cards. Profits generated by the krediidiühing are returned to members in the form of lower loan interest rates, higher savings rates, and reduced fees.

Unlike traditional banks, which are owned by shareholders, credit unions are governed by a volunteer board of directors elected by the members. This democratic structure ensures that the credit union's operations are focused on the best interests of its membership. Krediidiühingud play a significant role in local economies, often supporting community development and providing accessible financial services to a broader segment of the population. They are regulated by national authorities to ensure financial stability and protect member deposits.