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A lot of people want to lend more than they applied for initially and it just makes sense to allow them if entitled afterall it should be equal rights for all and not a luck based thing.
It is taking people months to get the bbl and is severely tying up lenders time a resources to process the applications. If people could keep going back for more then that would cost even more to administer - the lenders aren't due to make very much money out of this. 2.5% interest after 1 year and a lot of these will default and they will have the expense of chasing before falling bank on the guarantee. Once you factor in the admin involved there probably is no profit for them
That's not how the loans work. They accrue interest at 2.5% per annum from the day they are taken out, and the Govt pays the bank on the borrower's behalf a sume equivalent to the first year's interest payments.
