Paraguay - Multisectoral Approach Brings Housing Finance to Low Income Populations


A joint partnership between the Inter-American Development Bank, Habitat for Humanity, Citibank, and Vision Banco links affordable housing finance with construction technical expertise. The initiative demonstrates how partnerships can be leveraged to bring down the costs and risks associated with offering finance products to poor populations. 

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  • Provide low-income families earning less than four times the minimum wage with the financing they need to improve and expand their homes.


In Paraguay, four major stakeholders have partnered to bring access to housing finance for low-income communities. The project starts with a $3 million USD partial credit guarantee from the Opportunities for the Majority initiative of the Inter-American Development Bank. This, together with Citibank N.A. Paraguay’s support will provide the long-term financing needed by  Vision Banco, a local financial institution, specializing in microfinance. With this funding, Vision Banco will begin developing financial products specifically designed for low-income segments looking to improve or expand their homes.

Vision Banco gets support in several ways from NGO, Habitat for Humanity. First, Habitat for Humanity provides individual home builders with technical expertise to ensure that homes are built properly, efficiently, and safely. Second, Habitat for Humanity plays a role in screening and training qualified applicants in construction techniques and financial literacy. These efforts to train borrowers how to manage repayment of loans significantly reduce the risk of default, thereby lowering the cost of finance for Vision Banco. 


Up to 2,500 families have accessed these financial services and improved their homes.