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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 $40,877,575 $874,960,175
Amount of raised Inactive loans $0 $710,400
Number of raised Inactive loans 0 536
Amount of Paying Back Loans $4,162,300 $136,648,425
Number of Paying Back Loans 2,175 167,060
Amount of Ended Loans $36,715,275 $737,601,350
Number of Ended Loans 17,215 916,439
Delinquency Rate 3.93% 8.46%
Amount in Arrears $88,837 $7,476,165
Outstanding Portfolio $2,261,197 $88,321,485
Number of Loans Delinquent 178 22,435
Default Rate 0.24% 1.32%
Amount of Ended Loans Defaulted $87,414 $9,707,641
Number of Ended Loans Defaulted 128 27,160
Currency Exchange Loss Rate 0.13% 0.44%
Amount of Currency Exchange Loss $52,715 $3,823,595
Refund Rate 0.17% 0.65%
Amount of Refunded Loans $67,675 $5,700,625
Number of Refunded Loans 60 5,834

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 76.96% 74.90%
Average Loan Size $237 $407
Average Individual Loan Size $764 $640
Average Group Loan Size $3,382 $1,805
Average number of borrowers per group 16.4 7.8
Average GDP per capita (PPP) in local country $8,400 $5,934
Average Loan Size / GDP per capita (PPP) 2.82% 6.86%
Average Time to Fund a Loan 4.75 days 6.92 days
Average Dollars Raised Per Day Per Loan $49.95 $58.85
  Average Loan Term 7.9 months 11.06 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,808 447,300
  Journaling Rate 9.84% 41.58%
  Average Number of Comments Per Journal 0.07 0.05
  Average Number of Recommendations Per Journal 1.30 1.27

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 40% PY 24.00% PY 26.87% PY
  Profitability (return on assets) 6.07% 2% -0.78%
  Average Loan Size (% of per capita income) 11.30% 35.00% 18.82%

Country Fast Facts

Field Partner Staff

Martín Burt
Luis Jara
Claudia Ortega
Luis Fernando Sanabria