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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 $25,162,400 $624,426,725
Amount of raised Inactive loans $0 $392,175
Number of raised Inactive loans 0 321
Amount of Paying Back Loans $3,108,700 $121,055,225
Number of Paying Back Loans 1,700 132,311
Amount of Ended Loans $22,053,700 $502,979,325
Number of Ended Loans 11,461 633,869
Delinquency Rate 2.52% 4.81%
Amount in Arrears $50,476 $3,755,876
Outstanding Portfolio $2,001,522 $78,127,772
Number of loanDelinquent 171 17,820
Default Rate 0.12% 1.11%
Amount of Ended Loans Defaulted $25,553 $5,607,531
Amount of Ended Loans $22,053,700 $502,979,325
Number of Ended Loans Defaulted 31 17,326
Currency Exchange Loss Rate 0.00% 0.11%
Amount of Currency Exchange Loss $138 $679,982
Refund Rate 0.26% 0.73%
Amount of Refunded Loans $66,475 $4,587,900
Number of Refunded Loans 59 5,125

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 75.12% 74.18%
Average Loan Size $232 $418
Average Individual Loan Size $768 $654
Average Group Loan Size $3,100 $1,837
Average number of borrowers per group 15.8 8
Average GDP per capita (PPP) in local country $4,555 $3,409
Average Loan Size / GDP per capita (PPP) 5.10% 12.27%
Average Time to Fund a Loan 4.42 days 5.79 days
Average Dollars Raised Per Day Per Loan $52.56 $72.26
  Average Loan Term 7.67 months 10.52 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,177 313,136
  Journaling Rate 9.50% 42.15%
  Average Number of Comments Per Journal 0.10 0.07
  Average Number of Recommendations Per Journal 1.81 1.77

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 39% PY 24.00% PY 33.35% PY
  Profitability (return on assets) 0.2% 2% -1.49%
  Average Loan Size (% of per capita income) 11.30% 35.00% 38.01%

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

Kiva Fellow(s)

Sarah Renfer