Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

June 9, 2020 - COVID-19 Update:

Kiva has been in contact with Fundación Paraguaya to understand how we can best support their business and borrowers during the ever-evolving COVID-19 pandemic. We continue to prioritize the safety and well-being of all staff, borrowers and their families as this global pandemic continues.

While country-specific responses to the crisis vary, most governments have imposed curfews, travel restrictions, and nation-wide shutdowns. Paraguay has imposed temporary moratoriums on loan payments, affecting not only microfinance, but the economy as a whole. 

As a result, borrowers and Fundación Paraguaya may experience difficulty making and collecting loan repayments due to the aforementioned restrictions or fallout effects of the virus. Over the coming months, it’s possible that lenders will see a delay in repayments and new loans posted by Fundación Paraguaya. As an impact-first funder, Kiva is committed to serving our Lending Partners, as in past crises. We are sympathetic to temporary increases in repayment delays and delinquency in order to help Lending Partners and borrower communities recover. 

Kiva is working closely with Fundación Paraguaya to support them and their borrowers through the COVID-19 crisis. Fundación Paraguaya is sending regular updates to Kiva, and we'll update Partner Pages as we learn more. 

On behalf of Kiva and Fundación Paraguaya, we’re grateful for your continued support through this difficult time. 

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 Lending Partner All Kiva Partners
  Start Date On Kiva May 23, 2007 Oct 12, 2005
Total Loans $111,375,030 $1,958,960,270
Amount of raised Inactive loans $12,075 $198,810
Number of raised Inactive loans 3 174
Amount of Paying Back Loans $3,222,870 $161,515,145
Number of Paying Back Loans 1,253 189,106
Amount of Ended Loans $100,000,000 $1,768,242,580
Number of Ended Loans 44,160 2,370,068
Delinquency Rate 6.09% 12.15%
Amount in Arrears $115,687 $12,196,492
Outstanding Portfolio $980,640 $100,379,645
Number of Loans Delinquent 245 72,762
Default Rate 0.56% 1.83%
Amount of Ended Loans Defaulted $558,382 $32,307,398
Number of Ended Loans Defaulted 757 84,791
Currency Exchange Loss Rate 0.21% 0.50%
Amount of Currency Exchange Loss $422,324 $11,998,745
Refund Rate 0.09% 0.54%
Amount of Refunded Loans $101,650 $10,526,300
Number of Refunded Loans 71 9,596

Loan Characteristics On Kiva

    This Lending Partner All Kiva Partners
  Loans to Women Borrowers 82.87% 78.24%
Average Loan Size $223 $392
Average Individual Loan Size $785 $589
Average Group Loan Size $3,480 $1,891
Average number of borrowers per group 17.2 8.3
Average GDP per capita (PPP) in local country $8,400 $5,599
Average Loan Size / GDP per capita (PPP) 2.66% 7.00%
Average Time to Fund a Loan 9.02 days 8.93 days
Average Dollars Raised Per Day Per Loan $24.75 $43.86
  Average Loan Term 7.77 months 11.47 months

Journaling Performance on Kiva

    This Lending Partner All Kiva Partners
  Total Journals 3,517 1,178,680
  Journaling Rate 7.69% 42.25%
  Average Number of Comments Per Journal 0.07 0.02
  Average Number of Recommendations Per Journal 1.23 0.57

Borrowing Cost Comparison (based on 2017 data)

    This Lending Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 40% PY 24.00% PY 27.02% PY
  Profitability (return on assets) 3.04% 2% -3.10%
  Average Loan Size (% of per capita income) N/A 35.00% 0.00%

Country Fast Facts

Lending Partner Staff

Juan Emilio Espinola Jimenez
Jaime Ferreira
Luis Jara
Liliana Marroco
Claudia Ortega
Luis Fernando Sanabria