You will not lend more than 0.005 btc and i think this is too low for loan, because even if anyone wants to gamble from the loan then also atleast they will be needing minimum 0.01btc,
This is my view not compulsory to upgrade your loan limit.
I am gonna see how it goes for couple days but I am see that .005 maybe to low I am just try mostly risk free to start.
0.005btc seems very low for most loans, as long as your are taking collateral for loan you can increase the maximum loan amount, as you can see in other topics less then 0.005 loans are very rare.