About Fundación Paraguaya de Cooperación y Desarrollo
The Fundación Paraguaya de Cooperación y Desarrollo, (translated as Paraguayan Foundation for Cooperation and Development) established in 1985, has nearly four decades of experience as a non-profit institution. Operating 26 branches nationwide, mainly serving women and evenly distributed between rural and urban areas, the foundation's approach to poverty alleviation and sustainable livelihoods revolves around four pillars. Firstly, through microfinance, it supports entrepreneurs in managing financial risks and increasing income. Secondly, entrepreneurial education provides clients and their children with business management skills, fostering economic independence. Thirdly, it runs rural schools that not only educate on farming techniques and the hospitality industry but also generate revenue, ensuring long-term viability. Lastly, its internally developed "Poverty Stoplight" methodology, assessing poverty through 50 multidimensional indicators, enables tailored strategies for clients, enhancing their path to prosperity.
What is Fundación Paraguaya's mission?
Fundación Paraguaya’s mission is to "Develop and implement practical, innovative and sustainable solutions that activate the entrepreneurial potential of families to eliminate their multidimensional poverty and live with dignity." Meanwhile, its vision is "A world without poverty where we all want to live".
What types of financial services does Fundación Paraguaya provide?
The organisation's portfolio consists of four main loan products, the most important of which is the group loan for women, which represents half of its portfolio and is based on a joint liability methodology. Meanwhile, under the individual loan scheme the organisation offers loans for consumer needs, small business, and agriculture. In addition, Fundación Paraguaya offers microinsurance.
How much interest does Fundación Paraguaya charge?
Microfinance institutions (MFIs) charge higher rates of interest for several reasons. Firstly, the administrative costs of making many small loans are much higher than making fewer larger loans; secondly, they take more time assessing the feasibility of applications and thereby reducing risk because borrowers cannot offer traditional forms of collateral nor do they have salaried incomes; thirdly, MFIs often operate in geographically remote areas with low population densities and this means that they incur greater operational costs; and fourthly they often accompany loans with a range of training and technical advice.
Most of loan products of Fundación Paraguaya attract an Annual Percentage Rate (APR)* of between 20% and 26%.
*The APR is a standard way of expressing the cost of a loan that allows for comparison between loans. It includes annual interest, insurance, and fees that the borrower must pay, and is expressed as a percentage of the amount borrowed.
Does Fundación Paraguaya provide any training?
Fundación Paraguaya provides an impressive number of non-financial services to its members and their relatives. Apart from providing microfinance services, Fundación Paraguaya operates agricultural schools, fosters entrepreneurial education, and has created and globally advocated for a methodology to assess the poverty levels of its clients.
Where can I find out more information about Fundación Paraguaya?
Further information about Fundación Paraguaya is available at the organisation's website here.
Fundación Paraguaya: Basic facts and figures (June 2025)
Full name: | Fundación Paraguaya de Cooperación y Desarrollo |
Established: | 1985 |
Average loan size: | Approximately US$1,443 |
Number of active loans: | 29,648 |
Outstanding loan portfolio: | US$22.41 million |
Portfolio at Risk (PAR) at 30 days*: | 3.3% |
Proportion of loans given to women: | 92% |
Proportion of loans given in rural areas: | 37% |
*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.
Paraguay: Basic facts and figures (August 2025)
Population: | 6.93 million* |
Currency: | Paraguayan Guarani* |
GDP per capita: | US$6,416* |
Inflation (GDP deflator): | 3.8%* |
Life expectancy: | 74 years* |
Percentage of population living on less than $3 a day: | 2.6%* |
Human Development Index ranking: | 99 (of 193 countries)** |
Population using safely managed drinking water: | 64%*** |
Infant mortality rate (per 1,000 live births): | 22**** |
Percentage of adults with a bank account: | 57%**** |
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