Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme introduced by the Government of India on May 4, 2017, exclusively for senior citizens aged 60 years and above. It aims to provide them with a regular and assured monthly income after retirement. Due to its benefits and growing popularity among senior citizens, it has been extended several times. This was done to make sure that elderly people across the country continue to get financial support.
To know more about the PMVVY scheme, read the given article properly.
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched on May 4, 2017, for senior citizens aged 60 years and above, with no upper age limit and a 10-year policy term. It offers an assured monthly income and was available for subscription until March 31, 2023, providing pension amounts ranging from ₹1,000 to ₹10,000 per month.
For the first year, it offered a 7.40% yearly pension, paid monthly. The scheme is operated exclusively by LIC of India and is available for purchase both online and offline through the official LIC website.
Eligibility Criteria of Pradhan Mantri Vaya Vandana Yojana
Here is the table showing the eligibility criteria of Pradhan Mantri Vaya Vandana Yojana:
| Details | Number of Years |
|---|---|
| Minimum Entry Age | 60 years (completed) |
| Maximum Entry Age | No limit |
| Policy Term | 10 years |
Key Features of Pradhan Mantri Vaya Vandana Yojana
Here are the key features of Pradhan Mantri Vaya Vandana Yojana to consider:
| Feature | Details |
|---|---|
| Date of Launching | 4th May 2017 |
| Valid Upto | 31st March 2023 (closed for new subscription) |
| Department | Department of Financial Services, Government of India |
| Government Ministry | Ministry of Finance |
| Minimum Pension | Rs. 1,000 per monthRs. 3,000 per quarterRs. 6,000 per half-yearRs. 12,000 per year |
| Maximum Pension | Rs. 10,000 |
| Monthly Pension Per Annum | 7.40% |
Note: This pension plan by LIC was just active up to 31st March 2020. Now, they do not accept any new applications for the pension plan.
Benefits of Pradhan Mantri Vaya Vandana Yojana
Here are the points to state the benefits of Pradhan Mantri Vaya Vandana Yojana:
Pension Payment
The pensioner receives a fixed amount of pension regularly throughout the 10-year policy term under the PMVVY scheme of LIC. The payment is made at the end of the chosen mode, monthly, quarterly, half-yearly, or yearly. This ensures a steady income to help meet day-to-day expenses during retirement.
Death Benefit
In case the pensioner passes away during the 10-year policy term, the entire purchase price (amount paid to buy the policy) will be refunded to the nominee or legal heir. This acts as financial support to the family of the deceased.
Maturity Benefit
If the pensioner survives till the end of the 10-year term, they will receive the full purchase price back, in addition to the regular pension payments received over the years. This helps in preserving the invested amount.
Assured Returns
The scheme guarantees a return of 7.40% per annum, which is payable monthly. This return is fixed and risk-free, making it ideal for senior citizens who prefer a stable income. Additionally, the scheme is exempt from service tax and GST, ensuring the full benefit reaches the pensioner.
Loan Facility
After completing three policy years, the pensioner is eligible to take a loan of up to 75% of the purchase price. This option provides financial flexibility in case of urgent needs or emergencies.
Premature Exit Option
The scheme allows for early withdrawal of funds in case the pensioner or their spouse is diagnosed with a critical or terminal illness. In such situations, 98% of the purchase price is refunded, helping to cover medical costs.
Family Coverage
The scheme is designed to provide security not just to the pensioner but also to their spouse and dependents. In case of death during the policy term, the nominee or beneficiary receives the benefit, ensuring continued financial support for the family.
This structure helps make PMVVY a safe and supportive option for senior citizens seeking a reliable source of income during retirement.
How To Buy Pradhan Mantri Vaya Vandana Yojana Online?
Here are the steps to buy Pradhan Mantri Vaya Vandana Yojana online:
Step 1
Go to the official LIC website (www.licindia.in).
Step 2
On the homepage, go to “Buy Policies Online” or select the plan category (like Endowment or Money Back).
Step 3
Select the specific plan you wish to purchase.
Step 4
Click on “Learn More” to open the application page.
Step 5
Fill in the form and upload the required documents.
Step 6
Submit the form and make the payment online.
How To Buy Pradhan Mantri Vaya Vandana Yojana Offline?
Step 1
Visit the nearest or your preferred LIC branch.
Step 2
Decide the pension amount you want.
Step 3
Fill out the application form.
Step 4
Attach the required documents.
Step 5
Submit the form along with the selected amount.
Other Details of Pradhan Mantri Vaya Vandana Yojana
Here are some additional details of the plan explained in an easy-to-understand manner:
| Feature | Details |
|---|---|
| Mode of Pension Payment | Monthly, Quarterly, Half-yearly, Yearly |
| Pension Payment Method | Through NEFT or the Aadhaar Enabled Payment System (requires Aadhaar validation) |
| First Pension Installment | After 1 month (monthly), 3 months (quarterly), 6 months (half-yearly), or 1 year (yearly) from the date of purchase |
| Pension Rates per ₹1000 Purchase Price | Yearly: ₹76.60Half-yearly: ₹75.20Quarterly: ₹74.50Monthly: ₹74.00 (Rounded to nearest rupee and it is same for all ages) |
| Surrender Value | 98% of Purchase Price (only in case of critical/terminal illness of self or spouse) |
| Loan Facility | Available after 3 policy yearsMax loan: 75% of Purchase PriceInterest rate for loans sanctioned till 30th April 2021: 9.5% p.a.Interest recovered from the pensionLoan recovered from claim proceeds on exit |
| Taxes | As per prevailing tax laws (e.g., GST), taxes paid are not counted in the benefit calculation |
| Free Look Period | 15 days if the policy is purchased offline30 days if the policy is purchased onlineA full refund is provided afterDeducting applicable charges |
Conclusion
Pradhan Mantri Vaya Vandana Yojana provides financial security for senior citizens after retirement. It offers guaranteed pension payments regularly, helping them manage their daily expenses without depending on others. The scheme also protects them from market risks and offers tax benefits, making it a safe and beneficial choice.
With options for early exit in special cases, PMVVY ensures flexibility along with stability. Overall, this scheme plays an important role in supporting the elderly to live a peaceful, independent, and financially secure life in their retirement years.
FAQs
The PMVVY offers a fixed interest rate of 7.4% per annum, payable monthly. The government decides the rate, and it can change for new policy periods.
Yes, you can use the Pradhan Mantri Vaya Vandana Yojana calculator available on the LIC website or other financial platforms. It helps you estimate your pension based on the amount you invest.
No, online registration for Pradhan Mantri Vaya Vandana Yojana is not available now because the scheme was closed on 31st March 2023.
To apply for PMVVY, you must be a senior citizen aged 60 years or above. There is no maximum age limit, and the scheme is available for a policy term of 10 years.
You can check the PMVVY status by logging into your account on the LIC website or contacting your nearest LIC branch with your policy number.
No, both schemes are different.
- Pradhan Mantri Vaya Vandana Yojana is for senior citizens and offers pension benefits.
- Pradhan Mantri Matru Vandana Yojana is for pregnant and lactating women and provides financial assistance for maternity care.