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Costs of Health Education and Health Product Distribution: Bandhan's Experience from India

This paper presents an analysis of the financial costs and revenues associated with Bandhan’s provision of health services – including health education, health product distribution and informal linkages to healthcare providers – in West Bengal, India. We describe the components of the MFI’s health protection package developed and tested in partnership with Freedom from Hunger as part of the Microfinance and Health Protection (MAHP) initiative and then present an estimated income statement for the services, including both direct and allocated costs. The purpose of this analysis is to provide microfinance practitioners with practical information about the approximate cost of offering nonfinancial health services in conjunction with a microfinance program and to inspire further research and discussion about quantifying the potential financial and nonfinancial costs and benefits of such services.