Currently, provision of credit is one of the major strategies being used to alleviaternpoverty in Ethiopia. As the Dedebit Credit and Savings Institution (DECSI) isrnestablished for this purpose, the objective of this study is to evaluate the impact of DECSIrnmicro financing scheme to poverty reduction based on descriptive analysis, to investigaternthe determinants of loan repayment performance based on a recursive model, to assessrnthe institutional viability of DECSI; and finally to investigate and collate the relevancernand applicability of the Grameen Bank model to the Ethiopian condition with particularrnreference to DECSI in Tigray region. Primary data for the study was collected from arnsample of 25 I (! 05 from rural and I46 from urban) sample beneficiaries in TigrayrnRegion.rnThe results indicate that the credit scheme has made its own positive contribution (exceptrnurban sample beneficiaries related to access to educational facilities) to the beneficiariesrnin relation to income, access to educational facilities, medical facilities, household dietrnand savings in particular and to poverty reduction in general.rnAccording to the findings, sex, level of education and size of loan for rural, urban and thernwhole sample cases, loan diversion rate in the case of urban and the whole sample cases,rntimeliness of loan disbursement in the case of rural and the whole sample cases, incomern;rom activities financed by the loan in the whole sample case and other sources of incomernin the case of rural sample are found to be significant determinants for full loanrnrepayment performance as is expected. The study further found that dependency ratiornand loan supervision in the case of rural, loan supervision and other sources of income inrnurban and the whole sample cases and size of loan in the whole sample case arernsignificant determinants for loan diversion as expected.rnIn connection with applicability of the Grameen Bank model, it is concluded that it isrndifficult to directly apply the model in Ethiopia since the physical and socio-economicrnconditions of the two countries are different. Therefore, there should be somernmodification on the elements of the model namely; holding weekly meetings andrnrepayment of installments, taking the bank to the people because it demands highrnadministration cost due to the scattered nature of the dwellers in the country, particularlyrnthe rural areas of Ethiopia.