Critical Reasoning – Banking practice and collateral: Shalini applies to a bank for a Rs. 1,80,000 loan by mortgaging her house and promises to repay within five years. Identify the implicit assumption(s): (I) The bank routinely grants loans of Rs. 1,00,000 and above; (II) The bank accepts a house as valid collateral security for such loans.

Given data

• Applicant: Shalini.
• Loan request: Rs. 1,80,000 with her house mortgaged; tenure promised: 5 years.
• Assumption I: Bank's practice includes loans ≥ Rs. 1,00,000.
• Assumption II: Bank accepts a house as collateral against such loans.

Concept/Approach
The action described (mortgaging a house to obtain a bank loan) presupposes that the bank accepts a house as valid security. The exact internal threshold practice for amounts ≥ Rs. 1,00,000 is not a necessary presupposition.

Step-by-step reasoning
• Without II, offering a house as collateral would be meaningless; therefore II is necessary.• Even if the bank did not 'routinely' grant ≥ Rs. 1,00,000, applicants can still apply; the statement does not require a pre-existing practice (I).

Verification/Alternative
Deny II → the described collateral structure collapses. Deny I → the application can still be made; approval is not presupposed.

Common pitfalls

• Confusing an applicant's action with the bank's historical norms.

Final Answer
Only assumption II is implicit.