Generally, in Ethiopia, there are two types of non-banking financial intermediaries: sharerncompany micro finance institutions, which are 23 in number and savings and creditrncooperatives, which are 4178 in number. However, as compared to the demand for the servicerntheir coverage is very small. Although savings and credit cooperatives are user-owned financialrnintermediaries, many of the savings and credit cooperatives are located in the urban area andrnsavings and credit cooperatives are increasingly being organized in the rural areas recently. Thernresearch was conducted in Enderta Woreda, in Southern Zone of Tigray National RegionalrnState. The general objective of the study was to assess the role of saving and credit cooperativesrnon household income. Based on the general objective the study tried to address specificrnobjectives. The specific objectives were assessing the impact af saving and credit cooperatives inrnincreasing the income of the household, to identify the constraints of R USA CCQ, to see thernservice and growth pattern, to identify factors that can affect the participation of the householdrnto join RUSACCo and identify challenges of SACCO. In order to carry out the stated objectivesrnof the research, primary and secondary data were collected ji-om sample households andrnrespective organizations and analyzed using descriptive statistics and econometric model (logitrnmodel). Descriptive statistics such as mean, standard deviation and percentage were used forrnanalyzing the data. In addition, t-test and %' test were employed to compare members andrnnonmembers of the cooperative with respect to the hypothesized and other related variables.rnLogit model was used to identify the factors influencing the participation of household in savingrnand credit cooperatives in the study area. Nine explanatory variables were included in the logitrnmodel. . Variance Inflation Factor (VIF) and Contingency Coefficient (CC) were used to checkrnthe multicollinearity problems for continues and dummy variables respectively. Based on thernmodel out put, five were significant and the rest were insignificant to explain the dependentrnvariable. The significant variables that affect households to participate in R USA CCQ include:rnannual social expenditure of household, credit taking ji-om saving and credit cooperatives, thernamount of first loan taken by the household, training, and participating in other types ofrncooperatives. Besides, based on the result of weighted scored, the major constraints that affectsrnthe pel/ormance of saving and credit cooperatives were financial constraint of the institutionsrnshortage of the qualified staff members, poor technical support of government officials, poorrnfinancial capacity of members and shortage of availability of facilities. The study concluded thatrnthe services of RUSACCQs have increasedfrom time to time, members of household income wasrnbetter than non members by the expenditure approach. Therefore RUSACCQ has a positiverneffect on household income and is an appropriate option for the rural households to increaserntheir income. Hence, to promote such financial institutions in the rural areas in a sustainablernmanner the study suggested some measures to be taken by the concerned stakeholders.rnIX