Cost of Education in The Freedom from Hunger Version of Credit with Education

This paper presents a study of a program fielded by the organization, Freedom from Hunger, called credit with education.

The authors argue that Freedom from Hunger and its participants have demonstrated that credit and education can both be delivered at the same time, without damaging financial services. The authors:

• Present a cost accounting analysis of the cost of education offered in the program;
• Argue that integration does not delay financial sustainability, it increases impact and implementation manifold.

The paper states that the methodology of Freedom from Hunger for implementing village banking services depends on active participation by the clients in the accounting functions, meetings, decision making, etc.

• The strategy includes 4 types of education - village bank management, health/ nutrition/ family planning, better business development and self-confidence development;
• The calculations presented in the costs of education cover the training, implementation, monitoring, reporting and supervision of these educational services;
• The education is delivered by the field agent in the course of each regular village bank meeting. The training of the field agent is included in the calculation of the costs of delivering this 'extra service'.

The authors conclude with the argument that while 'extra education' does not seem to decrease the performance of financial services, it increases the overall benefit of the program to poor women clients.