should I be nervous?

[Matthew Harrison]

hello BP...I jus received an email stating that my loan request has been granted for 40k at 4.8%.  I have been looking for financing and this should be great news, but this seems just a little too good to be true.  The application was very short, and came through quickly without points, or scary high interest rate.  I have copied a section of the email that talks about a "loan insurance deposit" of 1%.  I have never heard of this (granted I am very new, this will be my first loan). But it makes me nervous that I am required to send money to the lender to start the process, feels kind of like a scam? Any feed back from those with more experience would be great.  Thanks! Here is the paragraph from the email...

The complete loan amount you seek will be granted to you and as fast as
you want it delivered, for the loan amount you seek you will be required
to make a one time refundable payment of 1% the requested amount ($400)
as your loan insurance deposit so that we can proceed in the preparation
of your loan paper works, note the said fee will be added to your loan
funds and will be transferred to you the same time with the loan
capital, check below for your loan installment...

[Wayne Brooks]

@Matthew Harrison Yes, just name them here.  Not only is there so such thing as a "loan insurance fee", the other language/grammar in the email reeks of Nigerian style scams.