Unscrupulous money lenders are rarely out of the news.

Doorstep loan sharks and other lending companies can blight people’s lives, saddling them with debts at huge rates of interest.

The alternative, loans from high street banks - while not as extortionate - can also be expensive, and are not easily accessible to everyone .

There is another option, which, despite its lower profile, is attracting more and more customers.

Last year membership of the Bradford District Credit Union (BDCU) increased by 26 per cent on the previous year. The union’s financial year ends on September 30, and in the first quarter to December 2014, it has continued to thrive, with 23 per cent growth in numbers. Currently standing at 4965 members, that figure is expected to grow to 5000 this month.

“We are continuing to develop,” says Andrew Bowker, the union’s chief executive officer. “We are expanding throughout the Bradford district.”

A credit union is an ethical savings and loans company run by its members who live or work within the Bradford district. Members can save affordable amounts from a minimum of £1 a week for the unwaged, to £3 for those earning salaries.

Loans of between £200 and £7,500 are considered to people who join the credit union and regularly save weekly or monthly.

BDCU began in 1993, linked to Bradford Council, now with premises in City Hall and offices in Cheapside - which opened in September 2013 - it has cast its net further afield.

“We are now a community credit union,” says Dania Azadi, the union’s financial inclusion development officer. “Banks are answerable to shareholders - with us it is simply customers and the credit union.”

As mutual organisations, any surplus money made is given back to members through dividends on savings.

Last year 1223 loans were processed, for £1.26 million, a 29 per cent increase on the previous year, and since October 462 loans worth £1,774 have been processed - an increase of 138 per cent.

“Loan applications have risen threefold in the past three months,” says Andrew.

People who have been refused bank loans for various reasons, such as requiring photographic identification, may be helped by credit unions with loans of between £200 and £1,000. This enables them to avoid lenders charging extortionate rates of interest.

“People don’t read the bottom line, or the bottom line is not there,” says Andrew.

“A recent member had recently moved into a homeless shelter and could not get a bank account into which his benefit could be paid.”

Employers are also able to offer tie-ins with credit unions for employees who want to save. Partners with BDCU include Bradford Council, Incommunities, Yorkshire Water and Bradford College.

“We would like to see more schemes involving employers,” says Dania, “With employees paying in through payroll. Employers are realising that debt is a big issue and can greatly impact upon family life, children and work.”

Throughout the district there are 14 BDCU collection points, including community centres and churches, where people can open accounts and pay money into existing accounts. Locations include Canterbury Children’s Centre, Cottingley Cornerstone Centre and Eccleshill Mechanics Institute.

Information points, where the public can find out more about credit unions, are dotted about the district, at locations including Windhill Community Centre and the Rockwell Centre in Thorpe Edge.

Schools are also involved - two already have collection points - and it is hoped that a new, national pilot scheme involving credit unions conjunction with the Children’s Society , to offer children savings accounts in a practical, motivating way to teach them about money.

Late last year the Archbishop of Canterbury’s Task Group on Responsible Credit and Savings put forward plans for the scheme where savings clubs administered by credit unions in primary schools would encourage children to give small, regular amounts. They would also be given the chance to take part in the running of savings clubs.

In July last year BDCU expanded online, opening up the facility to a further influx of customers. As a result of this, new members and loan application increased by more than 30 per cent.

Members come from a range of backgrounds and incomes. “The credit union is for anyone ,” says Andrew. “Loans are based on affordability.”

Despite the rise in membership, and increased publicity, credit unions are not widely known about or understood by most people, but Andrew believes this is changing.

“Awareness is growing. Customers enjoy coming here - they are not a number. The union is run by the members for the members.”

* For more information visit bdcu.co.uk, call (01274) 434100 or visit credit.union@bdcu.co.uk.