LIC HFL Assistant/Associate cheat sheet

Subject-verb agreement: a singular subject takes a singular verb; phrases between the subject and verb (with, along with, as well as, together with) do not change the verb number.

Collective nouns (team, committee, jury) take a singular verb when acting as a unit and a plural verb when members act individually.

Relative pronoun 'who' refers to persons, 'which' to things, and 'that' to either but only in defining (restrictive) clauses.

Subject and object pronouns: use 'who/whom' by case in the clause - 'who' for subject position, 'whom' after a preposition or as object.

Parallelism: items joined by and/or/but must share the same grammatical form (all nouns, all infinitives, or all gerunds).

Modifier placement: a participial phrase at the start of a sentence must describe the grammatical subject, otherwise the modifier dangles.

Common confusables: affect (verb) vs effect (noun); principal (main/head) vs principle (rule); complement (complete) vs compliment (praise).

Reading comprehension strategy: locate the topic sentence, then match each option strictly to stated text; eliminate options that are true in general but unsupported by the passage.

Cloze/fill-in-the-blank: test the collocation first (preposition + noun, verb + preposition) before judging overall meaning.

Blood relations: draw a family tree with generations on separate horizontal levels and encode gender with symbols (+ male, − female) to avoid direction errors.

Direction sense: track net displacement using coordinate arithmetic; final distance = √(x² + y²) for perpendicular moves, and use the Pythagorean triplets (3-4-5, 5-12-13) for quick answers.

Syllogism (possibility cases): a conclusion follows only if it is true in every Venn arrangement consistent with the statements; if a counter-arrangement exists, the conclusion does not follow.

Coding-decoding: first test letter-shift patterns (constant shift, alternating shift, reverse alphabet where A↔Z), then positional sums and interchanges.

Seating arrangement: fix the most constrained person first, mark facing direction with arrows, and treat 'left/right' as reversed for people facing north versus south.

Series completion: check differences, then ratios, then alternating sub-series (odd positions and even positions separately) before trying squares/cubes.

Order and ranking: if a person is nth from the left and mth from the right, total = n + m − 1.

Input-output and machine logic: identify the stable rule (e.g., sorting by word length then alphabetically) and apply it uniformly to all steps, not just the given one.

Statement-assumption: an assumption is something unstated but necessary for the statement to make sense; reject options that merely repeat or restate the statement.

Simple interest: SI = (P × R × T)/100; amount A = P + SI. Compound interest: A = P(1 + R/100)^T; CI = A − P.

For two years, CI − SI = P(R/100)²; this shortcut is frequently tested and avoids full expansion.

Percentage change: increase of x% followed by decrease of y% gives net change = x − y − (xy/100)%.

Profit and loss: profit% = (SP − CP)/CP × 100; successive discounts of a% and b% equal a single discount of a + b − (ab/100)%.

Time-speed-distance: distance = speed × time; to convert km/h to m/s multiply by 5/18, and m/s to km/h multiply by 18/5.

Trains: time to cross a platform or another train = (length of train + length of platform or second train) / relative speed.

Boats and streams: downstream speed = boat + stream, upstream = boat − stream; boat speed = (down + up)/2, stream speed = (down − up)/2.

Time and work: if A does a job in x days and B in y days, together they take xy/(x + y) days; use LCM of days to set total work units.

Averages and mixtures: average = sum/count; alligation rule - ratio of quantities = (mean − cheaper)/(dearer − mean).

Permutation and combination: nPr = n!/(n − r)!; nCr = n!/[r!(n − r)!]; probability = favourable outcomes / total outcomes.

Reserve Bank of India: established 1 April 1935 under the RBI Act, 1934, nationalised in 1949; it is India's central bank and monetary authority, headquartered in Mumbai.

Monetary policy tools: repo rate (RBI lends to banks), reverse repo (RBI absorbs liquidity), CRR (cash reserve ratio), SLR (statutory liquidity ratio), and open market operations.

The Monetary Policy Committee (MPC) has six members and sets the policy repo rate to target CPI inflation of 4% with a tolerance band of ±2%.

National Housing Bank (NHB): set up in 1988 under the NHB Act, 1987, as a wholly owned subsidiary of RBI and the principal regulator/refinancer for housing finance companies.

Housing finance companies are regulated by RBI after the 2019 amendment to the National Housing Bank Act, which transferred HFC regulation from NHB to RBI.

Pradhan Mantri Awas Yojana (PMAY) provides interest subsidy on home loans under the Credit Linked Subsidy Scheme (CLSS) for eligible income categories.

Priority sector lending: banks must lend a specified share of adjusted net bank credit to priority sectors, with housing loans to weaker sections included under PSL guidelines.

NABARD (1982) handles agriculture and rural credit; SIDBI (1990) handles MSME finance; EXIM Bank (1982) handles foreign trade finance.

Deposit insurance: DICGC insures bank deposits up to ₹5 lakh per depositor per bank, covering principal and interest.

Tense consistency: a past-tense main clause takes past-tense reported speech (he said that he was ill), unless a universal truth is reported.

Conditional forms: 'If + present simple, will + base verb' for real conditions; 'If + past simple, would + base verb' for unreal present conditions.

Articles: 'a' before consonant sounds, 'an' before vowel sounds (an hour, a university); 'the' for specific or previously mentioned nouns.

Prepositions of time: 'in' for months/years, 'on' for days/dates, 'at' for clock times; 'since' with a point in time, 'for' with a duration.

Active to passive: object becomes subject, verb becomes be + past participle, and the agent is introduced with 'by'.

Error spotting: check subject-verb agreement, pronoun reference, tense sequence, and preposition collocation in that order.

Idioms and phrases: 'at the eleventh hour' means at the last moment; 'to burn the midnight oil' means to work late into the night.

Para jumbles: find the opening sentence (usually a general statement without backward reference), then link via pronouns and connectors like however, therefore, moreover.

Puzzle setup rule: count the number of variables and slots first; if slots exceed variables, expect a 'none of these' or empty-position logic.

Circular arrangement: for n people facing the centre, the person to the immediate left is anticlockwise and to the immediate right is clockwise; reverse both when facing outward.

Linear arrangement with two rows: determine facing direction for each row before applying left/right; opposite-facing rows mirror the left/right assignment.

Floor puzzles: 'above' means higher floor number, 'below' means lower; if a person lives between two floors, count floors strictly between them.

Inequality chains: A > B ≥ C means A > C; the conclusion holds only if the direction of the inequality is consistent throughout the chain.

Coded inequality: decode symbols to standard signs first, then re-test each conclusion against the decoded chain.

Data sufficiency: a statement is sufficient only if it yields a unique answer; if two statements each give different valid answers, mark 'either alone is sufficient' only when both individually suffice.

Machine input-output: steps usually sort, shift, or transform one element at a time; verify the rule against step 1 to step 2 before applying to the final step.

Percentage to fraction conversions speed up DI: 12.5% = 1/8, 16.66% = 1/6, 20% = 1/5, 25% = 1/4, 33.33% = 1/3, 37.5% = 3/8.

Approximation in DI: round each figure to the nearest convenient value and compute; the answer options are usually spaced enough to absorb rounding.

Percentage of total in a pie chart: angle = (value/total) × 360°; conversely, value = (angle/360) × total.

Ratio and proportion: if a:b = c:d then ad = bc; for three quantities, express all in terms of a common unit before comparing.

Partnership: profit sharing is proportional to capital × time; compute each partner's capital-time product and divide profit in that ratio.

Pipes and cisterns: a filling pipe in x hours fills 1/x per hour; a leak emptying in y hours subtracts 1/y; net rate = 1/x − 1/y.

Simple and compound interest comparison: for the same P, R, T, CI exceeds SI from the second year onward because CI earns interest on interest.

Ages problems: set up equations from the current age and the stated future/past relation, then solve simultaneously; check the answer against both conditions.

Number system: divisibility by 3 and 9 depends on digit sum; by 4 on the last two digits; by 8 on the last three digits; by 11 on alternating digit sums.

Bank nationalisation: 14 major commercial banks were nationalised in 1969 and 6 more in 1980; Regional Rural Banks were created in 1975 on the recommendation of the Narasimham Working Group.

Banking types: scheduled commercial banks (in the Second Schedule of the RBI Act), cooperative banks, payments banks, small finance banks, and regional rural banks.

Narasimham Committee (1991 and 1998) recommended prudential norms, capital adequacy, and reduction of SLR/CRR - the basis of banking sector reform.

Basel norms: Basel III requires a minimum capital adequacy ratio with a capital conservation buffer; Indian banks follow RBI's Basel III transition guidelines.

Non-Performing Assets: a loan becomes an NPA when principal or interest is overdue for more than 90 days; sub-standard, doubtful, and loss assets are the further classifications.

Insolvency and Bankruptcy Code, 2016 provides time-bound resolution; the RBI can refer large NPAs to the NCLT under the IBC.

Financial inclusion: Jan Dhan Yojana (2014) provides basic savings accounts; UPI and Aadhaar-enabled payment systems are run by NPCI.

SEBI regulates securities markets, IRDAI regulates insurance, PFRDA regulates pensions, and RBI regulates banks and NBFCs - the four main financial regulators.

Synonyms: choose the option closest in meaning in the given sentence context, not the most common meaning of the word.

Antonyms: watch for negative prefixes (un-, in-, dis-, il-) and for words that are near-synonyms of the original, which are wrong answers.

One-word substitutions: 'philanthropist' (charitable giver), 'misanthrope' (hater of mankind), 'ephemeral' (short-lived), 'ubiquitous' (present everywhere).

Sentence correction: eliminate options that change the intended meaning even if grammatically correct; the best answer preserves meaning and fixes the error.

Reading comprehension inference: an inference must be logically supported by the text, not merely plausible in real life.

Vocabulary in context: use surrounding words to fix the sense of a polysemous word (e.g., 'bank' as a river edge vs a financial institution).

Connectors: 'although/though' signals contrast, 'therefore/hence' signals consequence, 'moreover/furthermore' signals addition, 'nevertheless' signals concession.

Direct to indirect speech: change pronouns to match the reporter, shift tense back one step, and convert time/place words (today→that day, here→there).

Statement-conclusion: a conclusion is valid only if it follows necessarily from the given statement; general knowledge or personal opinion is not admissible.

Cause and effect: two events are causally linked only if one clearly precedes and produces the other; independent events with a common cause are not cause-effect.

Course of action: a valid action must be feasible, address the stated problem directly, and be within the authority implied by the statement.

Strong vs weak argument: a strong argument is directly related to the statement and supported by evidence or logic; a weak argument is tangential or merely assertive.

Assumption vs inference: an assumption is unstated and necessary; an inference is a logical deduction from stated facts.

Analogy: identify the exact relationship (part-whole, worker-tool, cause-effect) before matching; a superficially similar pair with a different relation is wrong.

Odd one out: classify by a single consistent property (all prime, all capitals, all metals) and reject the item that breaks only one property.

Logical sequence of words: arrange by chronological or functional order (e.g., seed → sapling → tree → timber), then match to the given options.

Squares to memorise: 1–30 squares and cubes of 1–15 are assumed knowledge; 27² = 729, 28² = 784, 29² = 841, 31² = 961.

Multiplication shortcuts: to multiply by 11, add adjacent digits and carry; to multiply by 5, halve and multiply by 10; to multiply by 25, quarter and multiply by 100.

LCM and HCF: HCF × LCM = product of the two numbers (for two numbers only); HCF divides both, LCM is a multiple of both.

Remainder theorem: for a number divided by 9, the remainder equals the sum of its digits reduced mod 9; use digit sums for quick checks.

Unit digit cycles: powers of 2 cycle 2,4,8,6; of 3 cycle 3,9,7,1; of 7 cycle 7,9,3,1; of 8 cycle 8,4,2,6 - period 4.

Simplification: follow BODMAS - brackets, orders (powers/roots), division and multiplication, addition and subtraction, left to right within each tier.

Average speed for equal distances: harmonic mean = 2xy/(x + y), not the arithmetic mean, when the two speeds cover the same distance.

Ratio of ages or amounts over time: express the present ratio as 3x and 4x, apply the time change to both, then solve for x.

Number of factors: prime-factorise N = a^p × b^q; the number of divisors is (p + 1)(q + 1).

Home loan eligibility is typically based on income, age, credit score, and existing EMIs; lenders cap the EMI-to-income ratio, commonly around 40–50%.

EMI formula: EMI = P × r × (1 + r)^n / [(1 + r)^n − 1], where r is the monthly interest rate and n the number of monthly instalments.

Loan-to-value (LTV) ratio: the loan amount as a percentage of the property's value; higher LTV generally means higher risk and a higher interest rate.

Credit score: CIBIL scores range from 300 to 900; a score of 750 or above generally improves approval odds and rate offers.

Fixed vs floating rate: a fixed rate keeps the EMI constant; a floating rate moves with the benchmark, and RBI's external benchmark rules link many retail loans to the repo rate.

Mortgage: a legal charge on immovable property as security for a loan; a registered mortgage gives the lender the right to enforce the security on default.

Home loan tax benefits: deduction on principal repayment under Section 80C and on interest under Section 24(b), subject to the limits in force for the relevant year.

Prepayment: floating-rate home loans to individuals generally carry no prepayment penalty under RBI rules; fixed-rate loans may attract a charge.

Reverse mortgage: a loan against a house for senior citizens, where the lender pays the borrower and the loan is settled from the property's sale.

Run-on and comma splice: two independent clauses need a semicolon, a coordinating conjunction, or a full stop - not a comma alone.

Dangling modifier test: the subject of the main clause must be the doer of the action in the opening participial phrase.

Comparatives: use 'than' after a comparative (better than, not better from) and 'as … as' for equality; do not double the comparative (more better is wrong).

Countable vs uncountable: 'fewer' with countable nouns, 'less' with uncountable; 'many' with countable, 'much' with uncountable.

Preposition after verbs: 'discuss' takes no 'about'; 'comprise' takes no 'of'; 'consist of', 'comply with', 'depend on' are fixed collocations.

Reported questions: use statement word order (he asked where I lived), not question order, and drop the question mark.

Parallel structure with correlatives: 'not only … but also', 'either … or', 'neither … nor' must join parallel elements.

Punctuation: use a semicolon before a conjunctive adverb (however, therefore) joining two clauses, and a comma after it.

Data sufficiency: do not solve fully - determine only whether the data yields a unique answer; stop as soon as uniqueness is established.

Three-way data sufficiency: if statement I alone suffices, mark accordingly without checking statement II unless the options require combined evaluation.

Blood relation coded form: translate symbols to relations before answering; 'A + B' may mean A is the father of B, so read the legend carefully.

Ranking with ties: when two people share a rank, the total count includes both and the formula n + m − 1 must be adjusted for the tie.

Syllogism with 'only a few': 'only a few A are B' means some A are B and some A are not B - both parts must be honoured.

Decision-making: choose the option that best satisfies the stated criteria in order of priority; if no option fits all criteria, reject it.

Logical deduction from passages: accept the passage as true and test each option for contradiction; an option that could be false given the passage is invalid.

Calendar and clock: in a normal clock the hands coincide 11 times in 12 hours; the angle between hands = |30H − 5.5M| degrees.

Mixture replacement: if a vessel of volume V contains a fraction of milk and x litres are removed and replaced with water n times, final milk = V × (1 − x/V)^n.

Ratio splitting: to divide an amount A in the ratio a:b:c, each share = A × (respective term)/(a + b + c).

Successive percentage change: apply changes multiplicatively, e.g., 20% increase then 10% decrease gives ×1.20 ×0.90 = 1.08, a net 8% increase.

Time and work with efficiency: if A is twice as efficient as B, A takes half the time; convert efficiency ratios into work-per-day rates before combining.

Work and wages: wages are shared in the ratio of work done, which for equal time equals the ratio of efficiencies.

Speed with stoppages: if a bus covers a distance in time t with stoppages and t' without, stoppage time per hour = (t − t')/t hours.

Simple interest instalments: for equal annual instalments, equate the present value of instalments to the principal using the given rate.

Profit on selling price vs cost price: profit% on SP = profit/SP × 100, which differs from profit% on CP - read which base is asked.

RBI functions: currency issuance (except one-rupee coins and notes, issued by the Government of India), banker to government, banker to banks, lender of last resort, and foreign exchange manager.

Minimum Reserve System: RBI must hold gold and foreign securities as backing for note issuance under the RBI Act; the current requirement is a total reserve with a gold component.

Instruments: Treasury Bills (91, 182, 364 days) are money-market instruments issued by the Government; Certificates of Deposit and Commercial Paper are issued by banks and corporates respectively.

Call money market is for overnight uncollateralised lending between banks; the repo market is collateralised.

Liquidity Adjustment Facility and Marginal Standing Facility: MSF lets banks borrow overnight against SLR securities at a rate above the repo rate.

Deposit schemes: savings deposits, current accounts, fixed deposits, and recurring deposits; current accounts pay no interest and are meant for businesses.

Financial inclusion schemes: PMJDY (bank accounts), PMSBY (accident insurance), PMJJBY (life insurance), and Atal Pension Yojana (pension).

Digital payments: RTGS for high-value real-time transfers, NEFT for batch settlements, IMPS for instant transfers, and UPI for mobile-based payments via NPCI.