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The Graduation Approach

ULTRA-POOR

FROM SURVIVAL TO SUSTAINABILITY

There is poverty, and then there is the Ultra-Poor. These are the families invisible to standard microfinance—they have no assets, no steady income, and often, no hope. They cannot repay a loan; they need a ladder.

BRAC's Graduation Approach is a proven science. It provides a comprehensive 24-month sequence of support—asset grants, training, and healthcare—to lift the poorest households out of extreme poverty, permanently.

GRADUATE A FAMILY →THE 24-MONTH PLAN
Part 2: The Trap

Beneath the Bottom Line

Based on BRAC’s India research.
95%
Success Rate
Stay out of poverty long-term
2.1M
Graduated
Households reached by BRAC
<₹133
Daily Income
The definition of extreme poverty
24
Months
Duration of the program

Why Microfinance Fails Them

Traditional microfinance assumes the borrower has an income source to repay the loan. The ultra-poor have nothing—no land, no skills, no steady food. Giving them a loan pushes them deeper into debt.

They are caught in a Poverty Trap: they are too poor to save, too malnourished to work hard, and too isolated to access government help.

The Graduation Difference

  • Asset Grant: Instead of a loan, we give a productive asset (cow, goat, sewing machine) for free.
  • Consumption Stipend: We provide cash for food for the first few months so they don't sell the asset to eat.
  • Coaching: Weekly home visits to teach financial literacy, confidence, and hygiene.
STATUS: CLIMBING

The Climb Out

Consumption SupportMonth 1-6

Breathing room to focus on the asset.

Asset GrowthMonth 6-18

The cow gives milk; the shop sells goods.

Sustainable IncomeMonth 24+

Ready for microfinance and formal markets.

"Poverty is not the absence of income, but the absence of opportunity. Dignity returns when people are empowered." - Mohd. Shehbaz Shaikh

Part 3: The Rights

Entitlements & Schemes

Connecting the ultra-poor to the state safety net.

Antyodaya Anna Yojana

Right to Food

Specifically targets the "poorest of the poor" (AAY families). Provides 35kg of food grains per family per month at highly subsidized rates (₹3/rice).

Food Security

MGNREGA

Right to Work

Guarantees 100 days of wage employment in a financial year to a rural household. Crucial for lean seasons when agricultural work is unavailable.

Guaranteed Wage

Social Protection Linkages

NRLM (Livelihood Mission)

Organizes rural poor women into Self Help Groups (SHGs) and provides revolving funds and community investment support.

PMAY (Housing)

Pradhan Mantri Awas Yojana provides financial assistance to build pucca houses for the homeless and those living in dilapidated kutcha houses.

Ayushman Bharat

Health insurance cover of ₹5 Lakhs per family per year for secondary and tertiary care hospitalization. Vital for preventing health shocks.

Part 4: The Barriers

Why Do They Stay Poor?

Climate Shocks

A single flood or cyclone can wipe out the only asset (livestock/hut) an ultra-poor family owns, resetting their progress to zero.

Health Crises

Illness of the primary earner forces the family to sell assets or take high-interest loans from moneylenders.

Social Exclusion

Often belonging to marginalized castes or tribes, they are excluded from village decision-making and social networks.

Lack of Confidence

Years of destitution destroy self-belief. They often believe they are incapable of running a business or managing money.

Documentation

Lack of Aadhaar, Ration Card, or Bank Account prevents them from accessing the very government schemes meant for them.

YOUR ROLE

Don't just give alms. Support organizations that provide sustainable livelihoods. Advocate for inclusive policies.

Part 5: The Response

BRAC GRADUATION MODEL

The 4 Pillars of escaping the trap.

1. Livelihood Promotion

Giving the means to earn.

• Asset Transfer: Free livestock, seeds, or inventory.
• Technical Training: Teaching how to care for the animal or run the shop.

2. Financial Inclusion

Building a safety net.

• Savings: Encouraging small weekly savings to build a buffer.
• Financial Literacy: Teaching budgeting and bank account usage.

3. Social Empowerment

Building confidence.

• Coaching: Weekly visits by a mentor to problem-solve.
• Community Integration: Helping them join village committees.

4. Social Protection

Basic needs met.

• Healthcare: Linkage to government health schemes and basic care.
• Stipends: Cash support during the lean period.

5. Graduation

The exit strategy.

• Criteria Met: Multiple income sources, savings, and food security.
• Microfinance Ready: Eligible for standard loans to expand business.

ACTIVATE HOPE

Select your impact level. 85% of funds go directly to programs.

IMPACT LEVEL 1
₹2,000

Provides consumption stipend (food cash) for a family for 1 month.

DONATE NOW
RECOMMENDED
IMPACT LEVEL 2
₹15,000

Buys a pair of goats or starts a small grocery shop for a family.

DONATE NOW
IMPACT LEVEL 3
₹50,000

Sponsors the entire 24-month graduation journey for one household.

DONATE NOW

Tax Deductible under Section 80G.

Transparency: You will receive a donation receipt & impact report.

Frequently Asked Questions

What is the difference between Poor and Ultra-Poor?

The "Poor" may have some income and can repay micro-loans. The "Ultra-Poor" are destitute, often eat only one meal a day, have no assets, and cannot access traditional microfinance.

Do they have to pay back the asset cost?

No. In the Graduation model, the asset is a grant (free), not a loan. This gives them a debt-free start to generate income.

Is my donation tax deductible?

Yes. BRAC is registered under Section 80G. You will receive a tax exemption certificate via email within 7 days.

Disclaimer: The figures presented are illustrative, based on BRAC’s research-driven proposals rather than current outcomes - your support is what turns this vision into real change. This content is for informational purposes only and is not legal advice. Laws may vary by location. BRAC is not responsible for errors, omissions, or consequences arising from its use. BRAC® is a registered trademark. Unauthorized commercial use is prohibited. For corrections or permissions, email info@brac.in