The lending institution you mentioned is actually an intermediary. Their so-called need for emergency contacts to improve their scores is a false excuse, but they are actually collecting customer information.

If you have paid the fee, then you should take clever skills to get back the fee you paid in advance. All expenses paid in advance are a prelude to fraud. Normal loans do not need to pay any fees in advance. Anyone who pays in advance is trying to cheat you of your money.