Laenuühistutes

Laenuühistutes, also known as credit unions, are member-owned financial cooperatives that offer a range of banking services to their members. Unlike traditional banks that are owned by shareholders, laenuühistutes are owned and controlled by their depositors and borrowers. This structure means that profits are typically returned to members in the form of lower loan rates, higher savings rates, or improved services, rather than being distributed to external shareholders.

Membership in a laenuühistu is usually based on a common bond, such as residing in a particular geographic area, working for a specific employer, or belonging to a certain organization. This shared characteristic fosters a sense of community and mutual support among members. The primary goal of a laenuühistu is to serve the financial needs of its members, emphasizing financial well-being and responsible lending practices.

Laenuühistutes offer services similar to those of commercial banks, including savings accounts, checking accounts, personal loans, mortgages, and sometimes business loans. They are regulated by financial authorities to ensure the safety and soundness of their operations. The cooperative nature of laenuühistutes often leads to a more personalized customer service experience, as they are focused on member satisfaction rather than maximizing profit for external investors. The principles of cooperation, democratic member control, and economic participation are central to their operation.