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Pradhan Mantri Vaya Vandan Yojana (PMVVY)

Pradhan Mantri Vaya Vandan Yojana

Pradhan Mantri Vaya Vandan Yojana (PMVVY): The Government of India introduced the Pradhan Mantri Vaya Vandana Yojana (PMVVY) as a special Pension Scheme just for older people aged 60 and above, starting from May 4, 2017, until March 31, 2020. Recognizing its importance, authorities have extended the scheme until March 31, 2023, providing another three years of support beyond its initial deadline in 2020.

About Pradhan Mantri Vaya Vandan Yojana (PMVVY)

  • This pension scheme specifically targets individuals aged 60 years and above.
  • You can buy this scheme either online or offline through the Life Insurance Corporation (LIC) of India, which is the sole provider of this scheme.
  • The maximum investment allowed in the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme is ₹15 lakh.
  • We’ve set the policy duration at 10 years.

Key Points for Pradhan Mantri Vaya Vandan Yojana (PMVVY)

  • The Pradhan Mantri Vaya Vandana Yojana is a government pension scheme that aims to offer monthly payouts to older citizens for a term of 10 years.
  • Investors have the option to choose their desired pension amount or the purchase price they wish to invest.
  • Launched in 2017 by the Ministry of Finance, enrollment for the scheme was open until March 31, 2020.Recently approved by the Finance Ministry, the scheme will remain active until March 2023.
  • The initial rate of return for 2020-21 is 7.40%, and it undergoes annual adjustments based on the SCSS. You can purchase the scheme both offline and online.
  • The minimum monthly pension amount is Rs. 1000, while the maximum is capped at Rs. 9,250.In case of the subscriber’s death, the nominee will receive a refund of the purchase price.
  • The Life Insurance Corporation of India (LIC) is the sole provider of this scheme.

Eligibility Criteria

An applicant must:

  • Be an Indian Citizen.
  • Be 60 years or above.
  • Have an Adhar Card

    Key features of the Scheme

    • The scheme guarantees a starting annual return of 7.40% for the year 2020-21, which will be adjusted annually thereafter.
    • Pension payments are made at the end of each chosen period (monthly, quarterly, half-yearly, or yearly) throughout the 10-year policy term.
    • The scheme is exempt from GST.
    • If the pensioner survives until the end of the 10-year policy term, the purchase price plus the final pension installment will be paid.
    • After 3 policy years, the pensioner can take a loan of up to 75% of the purchase price to meet liquidity needs.
    • We’ll deduct the loan interest from your pension installments, and you’ll repay the loan from your claim proceeds.
    • The scheme permits premature exit in case of critical or terminal illness of the pensioner or their spouse, with a refund of 98% of the purchase price.
    • If the pensioner passes away during the policy term, we will pay the purchase price to the beneficiary.

    Benefits of the Scheme

    Following are the major benefits under the Pradhan Mantri Vaya Vandana Yojana (PMVVY):

      • The maximum pension ceiling applies to the entire family unit, which includes the pensioner, their spouse, and any dependents.
      • The Government of India will cover any deficit resulting from the variance between the guaranteed interest and the actual interest earned, along with administrative expenses, and repay it to the Corporation.

      Read Also: Atal Pension Yojana

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