You are right to be suspicious as it is a total scam. There is a thread here
from someone who received and responded to a similar e-mail a few months ago.
Once they have your bank details they will either try to withdraw money from your account, or send you a fake cheque to cover the 'loan'. They would then ask you to send them money to cover fees, before your bank discovers the cheque is a fake.
If you need to borrow money talk to a reputable bank, or at the very least a company from the yellow pages. If the rates look too good to be true then they are!