Last updated September 12, 2013

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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Status Update - September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution. During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff.

Kiva's new risk rating system, which now includes half stars, has enabled us to display Fundación Paraguaya's risk rating with a higher level of granularity. As a result, Fundación Paraguaya's risk rating will now be displayed as 4.5 stars instead of 5 stars.

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio. Fundación Paraguaya has been informed of the change in the display of their rating on Kiva's website.

Images courtesy of Fundaci
ón Paraguaya.
 


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 23, 2007 Oct 12, 2005
Total Loans $22,882,325 $576,348,175
Amount of raised Inactive loans $0 $223,100
Number of raised Inactive loans 0 244
Amount of Paying Back Loans $2,793,200 $120,282,525
Number of Paying Back Loans 1,522 126,748
Amount of Ended Loans $20,089,125 $455,842,550
Number of Ended Loans 10,687 580,754
Delinquency Rate 1.80% 3.31%
Amount in Arrears $27,973 $2,628,327
Outstanding Portfolio $1,551,753 $79,478,788
Number of loanDelinquent 73 11,186
Default Rate 0.04% 1.09%
Amount of Ended Loans Defaulted $7,992 $4,987,519
Amount of Ended Loans $20,089,125 $455,842,550
Number of Ended Loans Defaulted 17 15,361
Currency Exchange Loss Rate 0.00% 0.07%
Amount of Currency Exchange Loss $0 $406,266
Refund Rate 0.29% 0.78%
Amount of Refunded Loans $66,475 $4,479,350
Number of Refunded Loans 59 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 74.94% 74.22%
Average Loan Size $230 $418
Average Individual Loan Size $767 $656
Average Group Loan Size $3,020 $1,825
Average number of borrowers per group 15.6 8
Average GDP per capita (PPP) in local country $4,555 $3,439
Average Loan Size / GDP per capita (PPP) 5.04% 12.17%
Average Time to Fund a Loan 4.38 days 5.52 days
Average Dollars Raised Per Day Per Loan $52.44 $75.87
  Average Loan Term 7.56 months 10.25 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,115 287,934
  Journaling Rate 9.64% 42.60%
  Average Number of Comments Per Journal 0.11 0.08
  Average Number of Recommendations Per Journal 1.91 1.92

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 39.00% 24.00% 33.65%
  Profitability (return on assets) 0.2% 2% -1.40%
  Average Loan Size (% of per capita income) 11.30% 35.00% 41.35%

Country Fast Facts

Field Partner Staff

Lourdes Agüero
Rodrigo Alonso
Luis Antonelli
Martín Burt
Ever Estigarribia
Pasantes Fundacion Paraguaya
Roberto Gimenez
Luis Jara
María Liz Kehler
Norma Morel
Claudia Ortega
Claudia Ortega
Nancy Ramos
Robert Rout
José Luis Salomón
Luis Fernando Sanabria
Roberto Urbieta