Pradhan Mantri Vaya Vandana Yojana:- The central government has launched a scheme under national saving schemes called Pradhan Mantri Vaya Vandana Yojana (PMVVY). This is a policy-cum-pension scheme that provides alternative income to senior citizens of the country so that the post-pension needs of individuals can be fulfilled. Individuals whose age is more than 60 years can benefit from this scheme. Previously this scheme was till 31st March 2020 but now it has been extended up to 31st March 2023. So in this article, we are going to cover all the important aspects of PMVVY like the benefits of the scheme, eligibility criteria of the scheme, mode of payment, pension policy, etc.
About PM Vaya Vandana Yojana
PMVVY is a social security scheme for senior citizens. Under this scheme, the investor can invest money and make regular income on a monthly, quarterly, half-yearly, or annual basis. It is a policy-cum-pension scheme for senior citizens so that they can be protected from unpredictable market conditions and can get socio-economic security. Previously the government promised an 8% monthly rate of interest but now it has been updated to 7.40% for 10 year period. The investment limit for PMVVY is 15 lakh. In case of an emergency loan, up to 75% of the principal price can be sanctioned after 3 years into the policy. This scheme is implemented through the Life Insurance Corporation of India (LIC)
Objectives Of PMVVY
The main objective of PM Vaya Vandana Yojana (PMVVY) launched by the government of India is to provide a 7.40% interest on investment as a pension to senior citizens. This investment can be from Rs 1,50,000 to Rs 15,000,00.
Key Highlights Of Pradhan Mantri Vaya Vandana Yojana
|Pradhan Mantri Vaya Vandana Yojana
|Government of India
|Senior Citizens of India
|To Provide Pension
Revised Rate Of Pension
Many insurance plans are offered by the Life Insurance Corporation of India and out of this, the prime Minister has launched Vaya Vandana Yojana. Under this scheme, the government has revised the rate of pension and extended the period of sale of the scheme for three years from the financial year 2020-21 to 31st March 2023. Under Pradhan Mantri Vaya Vandana Yojana the insurance rate is sold during each year as per the terms and conditions and are decided by the Finance Ministry at the beginning of each year i.e. how much the rate for the year will be. pension will be provided at the rate of 7.40% per annum by 31st March 2021.
Also Check: Surakshit Matritva Aashwasan Yojana
Maximum Investment Limit Under PMVVY
Under Prime Minister Vaya Vandana Yojana, citizens can invest up to a maximum limit of Rs. 15 Lakhs. along with that, the maximum investment limit has been changed from per family to Citizen per annum. That means if both husband and wife are senior citizens in a family they both can invest Rs. 15-15 lakh separately and can avail of the benefit of the bonus. The pensioner has the right to take the interest amount as a pension under Pradhan Mantri Vaya Vandana Yojana.
Ranges Of Pension
Under the Pradhan Mantri Vaya Vandana Yojana scheme, a pension ranging from 1000 to 10000 rupees is also available. Under this scheme, the pension is guaranteed with a fixed annual return of 8% for 10 years. An increase in the investment would have given senior citizens a guarantee to get a minimum of Rs. 10000 per month while a minimum pension of Rs 1000 per month and only the interest amount is received as a pension. This means if you have deposited Rs. 15 Lakhs then you will get the interest of Rs. 1 lakh 20 thousand rupees for this year at the rate of 8% by the increasing amount of interest to 10000 rupees every month.
PM Vaya Vandana Yojana Application Form
The first installment of the pension will be received after 1 year 6 months 3 months 1 month after depositing the amount depending on the option you choose. If the interested beneficiaries of the country want to apply under Pradhanmantri Vaya Vandana Yojana they can apply through both the procedure such as online or offline. Under the online procedure, people have to purchase the policy by registering online by visiting the official website of LIC, and offline they can visit the branch of LIC to avail of the PMVVY
Limit Of Policy Plan Under PMVVY
The policy plan under Pradhan Mantri Vaya Vandana Yojana is up to 10 years. An assured payment will be made at the rate of 7.40% per annum for the policy held by 31st March 2021. Under this scheme, the pensioner can choose a monthly, quarterly, half-yearly, or yearly pension at the time of purchase. Along with that, you can get a maximum pension of about Rs. 9,250 each month. You can also get a pension of Rs. 27,750 every quarter, Rs. 55,500 every half year, and Rs. 1,11,000 every year. Along with extending the duration of this scheme, the government has made major amendments to it. The amount of maximum investment up to Rs. 1 lakh 62 thousand has been amended in the amount provided for a maximum pension of 1000 rupees every month under Vaya Vandana Yojana.
PMVVY New Update
If a senior citizen leaves the scheme in the middle or exists then there is an option of withdrawing his money before maturity in the scheme. if a pensioner has a serious illness then the pensioner is required to get the money to get treatment. 98% of the amount deposited from the side will be returned. Under this scheme after three years of depositing the amount, you can take a loan of up to 75% of the amount you deposit. You will have to pay interest every six months till you return the amount and the amount of interest will be deducted from the pension given
PM Vaya Vandana Yojana Interest Rates
|Fixed Interest Rates
Maturity Benefit Under PMVVY
Pension will be given along with the deposited amount if the pensioner is alive till the policy terms of 10 years
- if the pensioner dies the deposited amount will be returned to the nominee on the death of the pensioner within ten years of the policy term.
- If the pensioner committed subside the deposited amount will be refunded
Benefits Of Vaya Vandana Yojana
- If the pensioner survives during the policy term of 10 years then a pension will be given at the end of each period as per the chosen mode
- If the pensioner dies during the policy term of 10 years then the purchase price will be refunded to the nominee of the beneficiary.
- On the survival of the pensioner to the end of policy terms of 10 years the purchase price with the Final pension installment will be payable to the beneficiaries
- Under the pension scheme, the pensioner is paid a 7.40% return monthly for 10 years
- Service tax or GST is exempted from PMVVY
- Payments can be made monthly/quarterly/half-yearly/yearly whichever is selected by the pensioner
- The amount including purchase price and final pension installment will be given at the end of 10 years
- If there is some emergency then a loan up to 75% of the principal amount can be sanctioned after 3 years into the policy
- the pensioner wants premature exit then 90% of the purchase price is refunded
- If the pensioner dies then the purchase price is paid to the nominee
Payment Of Purchase Price
The minimum and the maximum purchase price under different modes of pensions are given below
|Mode Of Pension
|Minimum Purchase Price
|Maximum Purchase Price
|Rs. 1,49, 068
Pension Rates For Rs.1000 Pension Purchase
The pension rate for the purchase of Rs. 1000 pension are given below
|Mode Of Pension
|Rs. 80 per annum
|Rs. 80.50 per annum
|Rs. 81.30 per annum
|Rs. 83.00 per annum
Loan Facility Under PMVVY
A loan facility is also available after the completion of a three-year Policy under Pradhan Mantri Vaya Vandana Yojana. The loan that will be given to the beneficiaries will be 75% of the purchase price. For the loan that is sanctioned in the financial year 2016-17, the interest rate is 10% per annum payable half-yearly for the entire term of the loan. The amount of the loan will be recovered from the pension under the policy. and the outstanding loan will be recovered from the claim proceeds at the time of exit.
Free Lock Period Of PM Vaya Vandana Yojana
If in any case, a policyholder is not satisfied with the terms and conditions of the policy then they may return the policy to the corporation within 15 days from the date of the receipt of the policy. The amount that is going to be refunded within the free look period will be of purchase price deposited by the policyholder but after deducting the charges of stamp duty and paid pension.
To be eligible for Pradhan Mantri Vaya Vandana Yojana (PMVVY) Applicants must be:
- Applicant should be a citizen of India
- Applicant’s minimum age should be 60 years
- There is no maximum age limit
- The applicant can invest 15 lakh for senior citizen
- The minimum policy term is 10 years
- The minimum pension to the beneficiary will be Rs. 1000 per month, Rs. 3000 per quarter, Rs. 6000 per half year, and Rs. 12000 per year.
- The maximum pension to the beneficiaries will be Rs. 5000 per month, Rs. 15000 per quarter, Rs. 30,000 per half-year, and Rs 60, 000 per year.
Documents Required To Register For PMVVY
Here is the list of all the essential documents that are required to register for PMVVY
- Aadhar card
- Proof of age
- Proof of residence
- Passport-size photos of the applicant
- Relevant documents/declarations to show the retired status of an applicant
Pradhan Mantri Vaya Vandana Yojana Mode of Payment
The pension will be paid on monthly, quarterly, half-yearly, and yearly payments as selected by the pensioner while applying for the scheme. The modes of payment of pension are as follows:-
- Aadhaar-enabled payment system
PM Vaya Vandana Yojana(PMVVY): Maximum/ Minimum Limits
- The applicant can invest up to Rs 15 lakh in the scheme individually
- The minimum investment in the scheme is Rs 1.5 lakh
PMVVY: Returns Under The Scheme
- Previously the government was providing an 8% rate of interest but now it has been updated to 7.40%. The government has also decided to update the rate of interest every year and this authority has been delegated to the Finance Minister
Loans Under Pradhan Mantri Vaya Vandana Yojana(PMVVY)
- 75% of the purchase price is the maximum allowed amount of loan that can be granted
- Only after the completion of three years in the policy loan can be applied
- The interest against the loan is recovered from the pension amount payable as per the policy and the outstanding loan is recovered from claim proceeds
Premature Exit from PM Vaya Vandana Yojana (PMVVY)
- If there is some critical illness of the self or the spouse then a premature exit is allowed under PMVVY.
- A refund of 98% of the invested principal will be e given and 2% will be charged as a premature exit penalty
- If the applicant commits suicide then 100% of the purchase price will be refunded to the nominee
Application Process Of PM Vaya Vandana Yojana
- Go to the nearest LIC branch
- Fill the form of PM Vaya Vandana Yojana
- Attach all the required documents
- Submit the form along with the documents to any LIC Branch
- Go to the Official Website of the Life Insurance Corporation of India (LIC)
- Now clock on ‘products’
- Search for ‘pension plans’ and click on proceed
- Now go to ‘buy policies’ and fill out the application form
- Attach all the required documents
- Now click on submit