The Seasiders are currently in negotiations with French side Nice over a potential loan move for the 24-year-old.
Holloway would like to keep Grandin at Bloomfield Road, but the boss has admitted that the midfielder is "homesick".
"The problem is that [Grandin] has been a little bit homesick," said Holloway. "He has split up with his wife and his little boy is over there [in France]. He wants to go home.
"Sometimes we say things and write things about footballers and forget they're human.
"Their families can mean an awful lot to them. It's really difficult and I've got the utmost respect for him. Sometimes football is far too important. Family should come first at all times."
Grandin joined the Tangerines in 2010 from CSKA Sofia.