Aredo, Dejene (Dr)Zewdu, Teferi2021-07-142023-11-042021-07-142023-11-042000-06http://etd.aau.edu.et/handle/123456789/27160Currently, provision of credit is one of the major strategies being used to alleviate poverty in Ethiopia. As the Dedebit Credit and Savings Institution (DECSI) is established for this purpose, the objective of this study is to evaluate the impact of DECSI micro financing scheme to poverty reduction based on descriptive analysis, to investigate the determinants of loan repayment performance based on a recursive model, to assess the institutional viability of DECSI; and finally to investigate and collate the relevance and applicability of the Grameen Bank model to the Ethiopian condition with particular reference to DECSI in Tigray region. Primary data for the study was collected from a sample of 25 I (! 05 from rural and I46 from urban) sample beneficiaries in Tigray Region. The results indicate that the credit scheme has made its own positive contribution (except urban sample beneficiaries related to access to educational facilities) to the beneficiaries in relation to income, access to educational facilities, medical facilities, household diet and savings in particular and to poverty reduction in general. According to the findings, sex, level of education and size of loan for rural, urban and the whole sample cases, loan diversion rate in the case of urban and the whole sample cases, timeliness of loan disbursement in the case of rural and the whole sample cases, income ;rom activities financed by the loan in the whole sample case and other sources of income in the case of rural sample are found to be significant determinants for full loan repayment performance as is expected. The study further found that dependency ratio and loan supervision in the case of rural, loan supervision and other sources of income in urban and the whole sample cases and size of loan in the whole sample case are significant determinants for loan diversion as expected. In connection with applicability of the Grameen Bank model, it is concluded that it is difficult to directly apply the model in Ethiopia since the physical and socio-economic conditions of the two countries are different. Therefore, there should be some modification on the elements of the model namely; holding weekly meetings and repayment of installments, taking the bank to the people because it demands high administration cost due to the scattered nature of the dwellers in the country, particularly the rural areas of Ethiopia.enDedebit CreditMicro-FinanceThesis