The Crédito Agrícola de Habilitación (CAH) is a state financial institution that provides credit to small and medium agricultural producers and rural entrepreneurs in Paraguay. Its documentation requirements vary depending on the type of credit line and the nature of the productive activity, but there are common elements across most applications.
Commonly required personal documents
Most CAH applications require a current copy of the applicant's national identity document (cédula de identidad), proof of address, and in some cases a certificate of residence from the local municipality. For married applicants, documentation related to the spouse may also be required.
Property and productive activity documentation
For agricultural producers, documentation related to the land being worked is typically required. This can include a land title, a lease agreement, or in some cases a declaration of possession. Evidence of productive activity — such as receipts from sales of agricultural products, membership in a cooperative, or a certificate from a local authority — may also be needed.
The fund use plan
CAH requires applicants to explain how the requested funds will be used. This is typically a written document describing the productive activity, the specific investment planned, and a basic budget. The format and level of detail required depends on the credit amount and type.
This is general information. Specific requirements may vary. Contact us to review what is needed for your particular application.
The fund use plan (plan de uso de fondos) is a written document that explains how an applicant intends to use the money they are requesting. It is a standard requirement in most microcredit applications and is one of the documents that reviewers look at most carefully.
What it needs to contain
A fund use plan generally describes the productive activity, identifies the specific items or services the funds will purchase, explains why those investments are needed for the activity, and includes a basic breakdown of costs. The level of detail varies by entity and credit amount.
Why the format matters
Each entity has a preferred format or template for the fund use plan. Submitting a plan that contains the right information but in the wrong format can delay processing or lead to a request for additional documentation. Following the entity's format from the start avoids this.
Common mistakes to avoid
The most common issues we see are vague descriptions of how funds will be used, budgets that don't align with the stated activity, and plans that don't address the specific format required by the entity. A complete, clearly written fund use plan is one of the most straightforward ways to ensure your file is not rejected for administrative reasons.
Paraguay has several authorized institutions that provide microcredit specifically designed for small agricultural producers and rural entrepreneurs. Each has different focus areas, credit amounts, and documentation requirements.
Crédito Agrícola de Habilitación (CAH)
CAH is a state institution focused specifically on small and medium agricultural producers. It offers credit lines for productive activities including crop production, livestock, and rural commerce. CAH operates through a network of regional offices across Paraguay and has programs specifically designed for producers in the interior.
Fundación Paraguaya
Fundación Paraguaya operates a microfinance program that serves small entrepreneurs and producers, with a particular focus on financial inclusion for people without access to traditional banking. Their programs have documentation requirements that are accessible but specific.
Other authorized entities
Several other financial entities authorized by the Banco Central del Paraguay and the Ministerio de Hacienda offer microcredit programs for small producers and entrepreneurs. Requirements and available amounts vary by institution and program.
Program availability and requirements change. Contact us to discuss which programs are currently active and relevant to your productive activity.
