Weird Situation in Personal Loan Process

Hey Everyone

Excuse my ignorance in case this is normal, but heres the situation:

Started my personal loan process with a Financial Institution, got approved, the 2 main reasons to get the loan are: debt consolidation and medical bills for a family member.

They approved the loan, sent me the contract, i signed and all good.

Then suddenly the next day, they want more info regarding the use of funds, and i responded with more details and they are reviewing it.

It doesn't bother me that they have questions about it, what bothers me is why are these things being asked after the client already signed a contract?

Isnt a contract made and sent to the client after you approve on your end? that makes no sense.

Now i am in limbo because they are "Hmmm actually let me think about it" while they have my signature all over the contract already

Thoughts?