Bandhan Targeting the Hard-Core Poor Program
West Bengal, India

Name of project: Bandhan Ultra Poor Program
Project implementer: Bandhan
Project partners: None
Location: West Bengal
Start date: 2007
No. of clients reached: 300 women
Research: Impact assessment with household-level randomization conducted by the Abdul Latif Jameel Poverty Action Lab
Consumption support: US$2.30/week up to 10 months
Livelihoods: Livestock (goats, cows) and small trade
Financial service: Weekly savings of Rs. 10 (US$.20); credit option at the end
Additional services: Bandhan provides veterinary and other livestock services (e.g., artificial insemination) and health services (sanitary latrines, hospital visits) and helps members access government programs
Scale up: Pilot participants are expected to graduate in summer 2009. Plans to scale up the pilot with its own funds and support from Michael and Susan Dell Foundation in seven districts to reach 27,000 people.

Bandhan is a fast-growing microfinance institution based in Kolkata, India. Established in 2002, Bandhan currently has over 1 million members (800,000 active borrowers). Bandhan is becoming a multi-service nongovernmental organization that offers education and health services, in addition to its core microfinance business.

Project status
The pilot covers 45 villages in Murshidabad, in northwest West Bengal. Unlike some of the other pilots in the graduation initiative, Bandhan has chosen to implement the graduation model independent of any partners. Though the team links up with local government health and sanitation programs, the bulk of primary services is provided by Bandhan itself. MIT’s Poverty Action Lab is conducting an impact assessment of this pilot, using household-level randomization.

The pilot is serving 300 families at a cost of $400 per beneficiary. A consumption stipend of $2.30 a week is distributed for up to 10 months, until the beneficiaries’ enterprises generate income. Bandhan provides members with an asset to start their enterprise worth $50–$150, depending on their choice of one of six livelihood options. The assets are either livestock (goats or cows) or materials to conduct commerce/trade activities. Essential care needs, such as a shed and veterinary services for the livestock, are also provided. For health services (e.g., provision of sanitary latrines, hospital visits) and extended livestock services (e.g., artificial insemination), Bandhan helps members access government programs.

Since Bandhan’s microfinance program is operational in the villages where the pilot is taking place, the team has an established presence and knowledge of the area. Additionally it is able to cross-subsidize costs by using microfinance branch infrastructure. Bandhan hopes that after 24 months, graduates of the pilot take advantage of Bandhan credit, health, or education programs.

Pilot participants are expected to graduate in summer 2009. Bandhan plans to scale up the pilot with its own funds and support from Michael and Susan Dell Foundation in seven districts to reach 27,000 people.