Savings accounts can be opened and loans applied for from Kent’s first church-based community bank.

More than 60 people attended its launch at All Saints in Murston on Monday.

The Bishop of Dover, the Rt Rev Trevor Willmott, became the first member after signing up with a £1,000 cheque. Some other people also joined.

Kent Savers Credit Union (KSCU) opened the Sittingbourne branch to help struggling families. So far, a dozen people have set up savings accounts but no one has applied for a loan yet.

The system, which was launched in 2010 to provide affordable financial services, allows members to pay into a not-for-profit organisation which then invests cash and lends it back to people when they are in need.

As credit unions cannot legally charge more than 26.8% interest annually, it is hoped it will tempt people away from taking out payday loans, some of which have rates of more than 5,000%, that they are then unable to pay back.

The Bishop said: “This is not a sticking plaster, or a way to paper over the cracks of people’s indebtedness, but our long-term intention to help and support people, in the belief that together we can make a difference.”

Volunteer staff will run the service within the vestry behind a moveable counter which has been specially designed and donated by local firm BW May and Sons Builders.

Customers will be able to pay money in and withdraw small cash amounts using a passbook as well as open a savings account, apply for a loan or simply get advice.

Opening hours are Monday to Friday 10am to noon.

As well as banking services, visitors will also be able to enjoy refreshments in the cafe, free wifi, access to a Citizens’ Advice Bureau representative once a week, as well as pastoral and spiritual support.

The partnership with the Diocese of Canterbury was launched in October. The move came three months after the Archbishop of Canterbury Justin Welby vowed to force payday lenders out of business by helping credit unions compete with it by allowing them access to the church’s buildings and expertise.

It was later revealed the Church of England had invested indirectly in Wonga.

Kent Savers was set up at Maidstone Community Support Centre in Marsham Street, and now has about 1,300 members. For details, visit www.kentsavers.co.uk or call 0333 321 9050.