NAB grants soft loans to Traditional Credit Union

Traditional Credit Union will more than double its capital resources with the aid of an interest free loan and a cash grant from National Australia Bank.

NAB will provide a $1 million loan and also provide a grant of up to $200,000 over five years, the bank said in a media release.

Traditional is probably the last new credit union to open for business in Australia, and that was 14 years ago. The credit union started with grant funds at the time.

The credit union serves Arnhem Land communities in the Northern Territory and operates through 12 branches with sixty staff. One object of the capital injection is to fund new branches.

The 2007 annual report of TCU shows the credit union has reserves of $575,000.

In the year to June 2007 TCU recorded a loss of $27,000 due to significant funds spent on a banking system conversion, renovations to the head office and an increase in staff training.

TCU's business is primarily one of deposit taking and working with customers, often local, community-owned businesses, to improve financial management.

ANZ also has a long-standing relationship with Traditional, funding its financial literacy work.