The article explores the sustainability of microfinance and the impact of subsidies on its financial and social performance. By analyzing data from 204 microfinance institutions, the researchers investigated how subsidies affect interest rates, profitability, and productivity. They also looked into which types of microfinance institutions benefit the most from subsidies. The study found that subsidies play a critical role in the efficiency and productivity of microfinance, and their impact varies depending on the characteristics of the institution. Additionally, the researchers examined the phenomenon of mission drift in microfinance.