PP,
I don't think they were misguided. Remember, they are not just throwing money at you, it will all be secured. So the worst case for the banks is that they do not get your business in the long run because you don't earn "the big money" but they still have got your mum and dad's house or something like that.
Best case scenario is you pay them back with interest, and earn the big money and stay with them.
Remember, Banks are like the casino owner. There is ONLY 1 WINNER