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The study focuses on the role of grant based approach to increase the efficacy of microfinance given by BRAC for the betterment of extreme poor people in Bangladesh. The purpose of conducting the study is to understand how grant based approach is helping the extreme poor people to create capacity to utilise the microfinance from BRAC through the use of livestock assets. The methodology of the study is mainly based on qualitative method. Focus group discussions are conducted with the service providers of BRAC as well as in-depth case study is accomplished with the beneficiaries of grant based approach to conduct the study. Extreme poor people have trust and belief on BRAC that they will never be in trouble when BRAC is holding their hands. Grant based approach has been supporting the beneficiaries with the training and vocational support so that the members can utilize the microfinance appropriately. The necessity of grant based approach is highly effective for the promotion of socio-economic life of the extreme poor people in Bangladesh. Reduced level of vulnerability from the life of extreme poor people is also another benefit of grant based approach.