A DARLINGTON credit union is to open up in shop premises.

Cockerton churches group has taken over the now empty Smyths bakery shop in West Auckland Road. Volunteers are cleaning it in readiness for opening in a couple of weeks' time.

Mr Michael O'Hickey, chairman, told the D&S Times the union had the lease on the shop until November. It is using part of a grant from the European regional development fund to pay for the project.

"We were at one time a church-based credit union set up by the three churches on Cockerton Green. But now we are available to any resident in the whole of Cockerton and Branksome."

Credit unions are useful for people who cannot get bank loans and are forced into taking high interest loans elsewhere.

"Our members become savers and shareholders, who get a small dividend at the end of the year."

They can take out loans based on their own savings and the amount of time they have been in the credit union.

"We charge a very low rate of interest - 1pc per month on the outstanding balance."

Not just disadvantaged borrowers are welcome, ordinary savers are needed to swell the pot of money which floats the others.

"It makes sense to join a credit union," said Mr O'Hickey. "It means people can get a cheap loan if they come across something that would be a good opportunity."