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Partner Description:

Fundación Paraguaya is a financially self-sustaining social enterprise that promotes entrepreneurship in urban and rural areas through three inter-related strategies:

1) A microfinance program that targets micro-entrepreneurs and emerging businesses, individuals who cannot access credit through banks or even other microfinance institutions.

2) An economic education program for children and youth so that they grow up with financial literacy they can leverage in their careers.

3) A financially self-sufficient and award-winning agricultural high school that teaches organic agriculture and entrepreneurial skills to low-income youth from rural areas, transforming their potential and earning power.

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These three program run separately in terms of budget and finances, but they are closely integrated at the operational level so that they enrich one another. This synergy adds value and is the driving force behind Fundación Paraguaya’s business model. It’s also the ingredient that makes the organization’s microfinance program so successful.

The staff at Fundación Paraguaya has a well-designed plan to lift clients out of poverty using the following strategies:

Direct delivery of financial and non-financial products.

Strategic alliances with like-minded organizations.

Clear focus on the growth and development of customers based on their feedback.

The organization’s microfinance program is a profitable, carefully managed business. Over the last five years, return of equity has averaged 10%. It has also been recognized by the Inter-American Development Bank and the World Bank for its transparency and client-centric approach.

Fundación Paraguaya distinguishes itself from its competition in two key respects. First, it concentrates on lending to micro-entrepreneurs and emerging businesses that are too small to get service from other microlenders. The average loan size offered by competing organizations is $600. Fundación Paraguaya’s average loan size is less than $450 with loans as low as $40.

Second, it provides a range of non-financial services, including client education, business advisory and community development services, and more. This enables Fundación Paraguaya to position itself as a development organization, rather than a purely financial institution.

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Images courtesy of Fundación Paraguaya.
 


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 23, 2007 Oct 12, 2005
Total Loans $28,256,200 $677,399,975
Amount of raised Inactive loans $0 $498,100
Number of raised Inactive loans 0 288
Amount of Paying Back Loans $3,680,550 $129,049,050
Number of Paying Back Loans 1,887 142,900
Amount of Ended Loans $24,575,650 $547,852,825
Number of Ended Loans 12,432 684,059
Delinquency Rate 3.65% 6.99%
Amount in Arrears $77,488 $5,866,163
Outstanding Portfolio $2,123,409 $83,907,671
Number of Loans Delinquent 244 22,141
Default Rate 0.11% 1.11%
Amount of Ended Loans Defaulted $25,928 $6,104,406
Amount of Ended Loans $24,575,650 $547,852,825
Number of Ended Loans Defaulted 33 18,783
Currency Exchange Loss Rate 0.01% 0.19%
Amount of Currency Exchange Loss $3,849 $1,320,899
Refund Rate 0.24% 0.70%
Amount of Refunded Loans $67,675 $4,723,750
Number of Refunded Loans 60 5,242

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 75.52% 74.24%
Average Loan Size $235 $417
Average Individual Loan Size $774 $656
Average Group Loan Size $3,195 $1,839
Average number of borrowers per group 16 8
Average GDP per capita (PPP) in local country $4,555 $3,382
Average Loan Size / GDP per capita (PPP) 5.15% 12.32%
Average Time to Fund a Loan 4.57 days 6.09 days
Average Dollars Raised Per Day Per Loan $51.44 $68.46
  Average Loan Term 7.74 months 10.65 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,287 334,439
  Journaling Rate 9.55% 41.64%
  Average Number of Comments Per Journal 0.09 0.07
  Average Number of Recommendations Per Journal 1.65 1.66

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 40% PY 24.00% PY 32.07% PY
  Profitability (return on assets) 2% 2% -1.94%
  Average Loan Size (% of per capita income) 11.30% 35.00% 19.61%

Country Fast Facts

Field Partner Staff

Martín Burt
Roberto Gimenez
Luis Jara
Claudia Ortega
Silvana Ortega
Nancy Ramos
Luis Fernando Sanabria