Volume : 3, Issue : 3, March - 2014

SHG Microfinance and The Non–Food Consumption Share Approach (NFS)

K. V. Prabhakara, Dr. Mustiary Begum

Abstract :

 The Non-Food consumption Share approach (NFS) in Dakshina Kannada and Mysore districts of Karnataka was calculated using the pattern of utilization of loan by SHGs through microfinance. Higher non-food consumption share is considered to be the indicator of poverty alleviation. The food share was very low and the NFS was considerably high, indicating that SHGs in both districts are progressive. However the utilization of loan to achieve this result reflects that it was not good enough. The SWOC analysis reveals that loan utilization for the purpose not specified (others) was extremely high, probably posing severe stress on micro finance threats. The weaknesses among SHGs were that more money was spent towards purchase of gold and repayment of old loans. Utilization towards children’s education and marriage was comparably low. NFS being very high in both districts indicate that SHG-micro finance played an important role in poverty alleviation