Question 1

What is Lefayeda Credit and Saving?

Accepted Answer

Lefayeda Credit and Saving S.C. is a small-scale microfinance institution operating in Ethiopia. The institution is licensed by the National Bank of Ethiopia to provide financial services to underserved populations, including rural farmers, urban small entrepreneurs, and micro-enterprise operators. As a member of Ethiopia's microfinance sector, Lefayeda focuses on delivering accessible financial services to individuals and communities traditionally excluded from conventional banking systems.

Question 2

When was Lefayeda Credit and Saving founded?

Accepted Answer

[Information not publicly available]. While specific founding details are not documented in public sources, Lefayeda Credit and Saving S.C. operates under Ethiopia's microfinance regulatory framework established by Proclamation No. 40/1996, which created the legal foundation for formal microfinance institutions in the country. The institution is registered as a share company and licensed by the National Bank of Ethiopia as required under this framework.

Question 3

Where is Lefayeda Credit and Saving headquartered?

Accepted Answer

Lefayeda Credit and Saving S.C. is headquartered in Addis Ababa, Ethiopia's capital city. According to the Ethiopian Deposit Insurance Fund (EDIF) registry, the institution maintains contact information in Addis Ababa and operates with license number 1942 from the National Bank of Ethiopia.

Question 4

Where does Lefayeda Credit and Saving operate?

Accepted Answer

Lefayeda Credit and Saving operates within Ethiopia, serving communities in Addis Ababa and potentially surrounding areas. As a smaller microfinance institution in Ethiopia's sector, Lefayeda's geographic footprint is more limited compared to the country's larger regional MFIs. The institution focuses on providing localized financial services to its target communities within its operational area.

Question 5

What services does Lefayeda Credit and Saving offer?

Accepted Answer

Under Ethiopia's microfinance regulations, Lefayeda Credit and Saving is authorized to provide core microfinance services including:
• Credit Services: Small loans (microcredit) to peasant farmers, urban small entrepreneurs, and micro-enterprise operators
• Savings Mobilization: Deposit-taking services including demand and time deposits
• Money Transfer Services: Domestic money transfer capabilities for clients

These services are designed to meet the financial needs of low-income individuals and small businesses who lack access to traditional banking services.

Question 6

What makes Lefayeda Credit and Saving unique?

Accepted Answer

Lefayeda Credit and Saving is classified as a small microfinance institution within Ethiopia's sector. According to research documentation, institutions in this category typically have a gross loan portfolio of less than or equal to 10 million Ethiopian Birr. This smaller scale allows Lefayeda to maintain focused operations and provide personalized financial services to specific communities.

The institution operates without a public website, reflecting its community-based approach and direct client relationships rather than digital-first service delivery.

Question 7

What type of financial institution is Lefayeda Credit and Saving?

Accepted Answer

Lefayeda Credit and Saving is a Microfinance Institution (MFI) licensed and regulated by the National Bank of Ethiopia. In Ethiopia's financial sector classification, MFIs are specialized deposit-taking financial institutions established as share companies under Proclamation No. 40/1996 (later revised by Proclamation No. 626/2009).

Ethiopian MFIs occupy a distinct niche in the financial system, serving clients considered "high-risk" by commercial banks—individuals with few assets, requiring small loan sizes, and engaged in activities with fluctuating income such as smallholder farming or petty trading. Unlike banks, MFIs are specifically designed to reach the unbanked and underbanked populations through group-based lending methodologies and alternative collateral mechanisms such as joint liability and social pressure.

Lefayeda Credit and Saving

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About Lefayeda Credit and Saving in Ethiopia