Financing for technical, undergraduate and graduate education with affordable rates

Education financing

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Financing for technical, undergraduate and graduate education with affordable rates
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Provide long-term financing of technical, undergraduate and graduate education for students outside the formal banking system and with limited credit history, with low interest rates through direct financing to students and / or companies seeking to improve their human capital

Expected Impact

Increase financing alternatives for education to decrease unemployment and improve income prospects

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
1,931,000 people between 15 and 29 years of age in the second quarter of 2020
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Gender Equality (SDG 5) Reduced Inequalities (SDG 10)
Sector Sources
  • (I) CAF - Banco de desarrollo de Latinoamérica. 2021. Capacidades, inclusión y vulnerabilidad financieras en Paraguay. https://scioteca.caf.com/bitstream/handle/123456789/1871/Capacidades_inclusi%C3%B3n%20y%20vulnerabilidad%20financieras%20en%20Paraguay.pdf?sequence=4&isAllowed=y (II) Gobierno del Paraguay. 2014. Estrategia Nacional de Inclusión Financiera. https://enif.paraguay.gov.py/storage/app/uploads/public/59e/10f/126/59e10f12678f7631648286.pdf (III) Datos Macro. 2020. La brecha de género se estrecha en Paraguay. https://datosmacro.expansion.com/demografia/indice-brecha-genero-global/paraguay?anio=2020
IOA Sources
  • (1) UNICEF. 2016. Perfiles de la exclusión educativa en la República de Paraguay. https://www.unicef.org/paraguay/media/4076/file/unicefpy_perfilesexclusioneducativa_.pdf (2) Dirección General de Estadística, Encuestas y Censos. 2020. Población Juvenil - EPHC 2020. https://www.ine.gov.py/vt/publicacion.php (3) ABC Color. 2017. Miles rinden para obtener becas de Itaipú. https://www.abc.com.py/nacionales/miles-rinden-para-obtener-becas-de-itaipu-1557589.html (4) Entrevistas. 2021. (5) Aswath Damodaran. 2021. Current Data. https://pages.stern.nyu.edu/~adamodar/ (6) Banco Basa. s.f. Producto ProEduc. https://www.bancobasa.com.py/storage/app/media/pdf/prestamos/Prestamos/pro-educ.pdf (7) Entrevistas con actores sectoriales. 2020 (8) Andrea M. Wehrle Martínez. 2020. Persistencia de las brechas de género en Paraguay. https://www.observatorio.org.py/especial/25 (9) Sepulveda Maldonado, J. A., Denegri Coria, M. D. C., Echeverría Gatica, P. A., Jurghen Reumay, E. A., & Paillao Jiménez, H. R. (2022). Efecto del endeudamiento estudiantil en salud mental y bienestar subjetivo de estudiantes de educación superior de Chile. https://revistas.unisimon.edu.co/index.php/psicogente/article/view/5182 (10) Gobierno del Paraguay. 2014. Plan Nacional de Desarrollo Paraguay 2030. https://www.stp.gov.py/pnd/wp-content/uploads/2014/12/pnd2030.pdf (11) Ministerio de Educación. 2008. Plan Estratégico de Educación Paraguay 2020. https://planipolis.iiep.unesco.org/sites/default/files/ressources/paraguay_plan_estrategico_paraguay2020.pdf (12) Ministerio de Educación. 2009. Plan Nacional de Educación 2024. https://mec.gov.py/talento/archivo/planes/MEC_plan-educacional-2024.pdf (13) Congreso de la nación paraguaya. 2012. Ley Nº 4758. https://www.bacn.gov.py/leyes-paraguayas/3151/ley-n-4758-crea-el-fondo-nacional-de-inversion-publica-y-desarrollo-fonacide-y-el-fondo-para-la-excelencia-de-la-educacion-y-la-investigacion (14) Congreso de la nación paraguaya. 1998. Ley Nº 1264. https://www.bacn.gov.py/leyes-paraguayas/3766/ley-n-1264-general-de-educacion (15) Congreso de la nación paraguaya. 2013. Ley Nº 5136. https://www.bacn.gov.py/leyes-paraguayas/2698/educacion-inclusiva (16) Agencia Financiera de Desarrollo. S.F. Acerca de la AFD. https://www.afd.gov.py/que-es-la-afd (17) International Finance Corporation. 2011. International Finance Institutions and development through private sector. https://www.deginvest.de/DEG-Englische-Dokumente/PDFs-Download-Center/IFI_and_Development_Trough_the_Private_Sector.pdf