The hard -core poor is the poorest section amongst the population with a few or no asset base, highly vulnerable to any shocks and mainly depending on wage labor, begging etc. Primarily, this section lacks confidence to avail and repay a microfinance loan. They are even hesitant in undertaking the risks involved with initiating an enterprise of their own. Bandhan's microfinance borrowers also discourage the inclusion of the said category into a microfinance group.

Thereafter Bandhan helps identify a feasible enterprise, which is easily manageable by the beneficiary and trains her on enterprise management and simultaneously engages in her confidence-building. Once the beneficiary is identified as capable of managing such an enterprise, the relevant asset is bought and donated to the woman (cash is not given). Regular training and hand-holding support is provided to her, both technical and with respect to consumption, till the enterprise becomes profitable. She is also trained to reach a stage of basic literacy and is educated on ten issues of social importance. Bandhan also provides the beneficiaries with sanitary latrines.