I read that Baba would sometimes demand huge sums for Dakshina, even telling people to take out loans. What was the meaning behind these extreme requests?

Yes, Chapter 14 confirms that Sai Baba's requests for Dakshina were not always for small amounts; he would ask for hundreds, thousands, and even lakhs. The text notes that if a devotee gave, he might say, "Bring more," and if they claimed to have no more, he would suggest, "Take a loan." This was not an act of greed but a profound spiritual test. He would simultaneously reassure the devotee, saying, "Do not worry even a little bit; I will give you bags of rupees." This intense method was designed to detach the devotee from their wealth and cultivate absolute trust in him, with the promise that for one quality of giving, he would give a hundred qualities in return.