RCS Advance Payments to Pay out Loan????

I was just approved for a loan with RCS , but before my loan can be paid out I have to pay a Credit Life Insurance of R2360.00 before the approved amount will be paid out.... I just spoke to the contact center before making any deposit as i was uneasy with the whole process. This is the email i received as an approval: Congratulations on the success of your loan application which has been approved with reference number: RCS ********** 8 Do find attached your loan Approval Letter, Repayment Schedule Letter and Loan Terms and Conditions in respect of your loan application. You are requested to read through the Loan Terms and Conditions and revert back to us within 48 hours. Your swift response is requested to enable us complete your Approved Loan sum Transfer. Your immediate action is required. Regards,

Angelina Bolton (Mrs.)

Senior Loan Manager RCS Loans Financial Company (SA) Limited Licensed Financial Services Provider

Phone: +27 63 ********** Fax : +27 86 ********** This was the clause that raised eyebrows: 1. The Borrower will pay the (Credit Life Insurance) charges of R2,360.00 before the approved amount is paid-out as indicated on the (Terms and Conditions of the application form) which will be used to acquire legal contract documents to back up the loan. REASONS: 'Credit life insurance' is the insurance cover a consumer takes out in the event of their death, disability, terminal illness, unemployment, or other insurable risk that is likely to impair the consumer's ability to earn an income or pay their monthly installments under a credit agreement.