The study analyzes the efficiency of 170 Microfinance Institutions in South Asian region during the period of 2008-2009, using data envelopment analysis (DEA) methodology. The worthy results prove that forty nine institutions are relatively efficient, and also exposes that the size of the MFIs have a negative effect on their efficiency given that the MFIs of modest size are more efficient. The results reveal two things; first is the ability to develop a trusty contact with credit borrowers and second is to maintain it due to a financial stability.The sustainability check is applied on 16 efficient MFIs, out of which 7 proved to be sustainable and show their long term availability.
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