First of all, some small loans really need to pay insurance money before they can be released, but I don't know the situation and it is difficult to judge whether it is true or not.

Secondly, if it is a formal contract, it will have legal effect if it is signed. The premise is that there is no violation of the principles of contract law.

Finally, it's no use calling the police without real evidence. Don't worry, look at the contract carefully and think back on the details of the loan before making a decision.

Let me answer your question, and I hope it will be adopted.