FREE savings, cheap loans and a real person at the end of a telephone line ? after several years planning, a new community banking service is soon to arrive in Tavistock town centre.

The Devonlane Credit Union opened a branch at the borough council offices at Kilworthy Park earlier this spring ? now it is hoped to establish a presence in the town centre.

Nick Mills-Hicks, manager of the new Tavistock office, said he was in contact with church leaders in the town to see if a collection point could be established centrally ? the portable cabin office at Kilworthy would still be kept on as a head office.

He said: Credit Unions are run by unpaid volunteers and are strictly supervised by the Financial Services Authority.

?The way they work is by offering regular savers the opportunity to take out a loan. Borrowers continue to save the same amount but half is taken to pay off the loan, while the other half adds to their savings ? so you are not just forking out money.?

Mr Mills-Hicks said an interest rate of one percent, fixed by UK law, is charged per month, on the decreasing amount owed.

?Just a £1 deposit and a £1 joining fee is sufficient to open an account, up to a maximum of £5,000,? said Mr Mills-Hicks, who said anyone could open an account, although depositers needed to be 18 before taking out a loan.

?Since Devonlane started six years ago, a total of more than £75,000 has been lent to members ? I think that?s quite encouraging,? said Mr Mills-Hicks.

He said another advantage of using a credit union is accessibility and flexibility.

Free insurance guarantees savers? money is safe. If a borrower dies, their loan is written off and their estate receives all the money saved, plus the same amount again. These benefits are free and provided by CUNA Mutual, which covers credit unions all over the world.

Devonlane Credit Union is also opening branches in Princetown and Bere Alston. A further branch is also due to open at Walkhampton ? all to be run by trained volunteers.

The Tavistock branch is open between 12 and 2pm on Wednesdays.

Cllr Norma Woodcock, who joined the Tavistock branch of the Devonlane Credit during her year as mayor of Tavistock, said: ?I think the hard work done by the volunteers who are running this service should be highly commended ? I am sure the credit union will prove a very useful facility for many people in the area.?

Anyone interested in finding out more about the credit union should call Nick Mills-Hicks on 01822 813590.