Pradhan Mantri Vaya Vandana Yojana – Eligibility, Benefits

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The Government of India comes up with a number of social security schemes every now and then based on the need of the hour. Public Provident Fund (PPF), Atal Pension Yojana, National Pension Scheme, Senior Citizens Saving Scheme, and many other schemes are already functional for years now.

They are popular among those who are planning and managing their retirement. A new addition to the list is Pradhan Mantri Vaya Vandana Yojana (PMVVY).

PMVVY is a retirement and pension scheme that is operated and managed by the Life Insurance Corporation of India (LIC), the largest life insurance provider in India. Here are all the details you may want to know about the scheme.

What is Pradhan Mantri Vaya Vandana Yojana?

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is retirement cum pension scheme announced by the Indian Government. The plan is subsidised by the government and was launched in May 2017.

The money invested by the purchasers of the scheme is called the purchase price. As the sovereign guarantees back the scheme, it offers an assured rate of return on investment.

The scheme pays out regular pension and the frequency can be monthly, quarterly, or yearly. The PMVVY is an excellent alternative to traditional bank deposits.

Eligibility for PMVVY

There are no specific eligibility criteria as such for PMVVY scheme except that the subscriber must be a senior citizen (above the age of 60 years). The applicant must be an Indian citizen.

There is no maximum entry age for PMVVY scheme. Also, the applicant must be ready to avail the policy term of ten years. The minimum purchase price is Rs 1.5 lakh, and it offers a monthly pension of Rs 1,000.

The maximum purchase price is Rs 15 lakh, and it offers a monthly pension of Rs 10,000.

Documents Required for PMVVY

The following are the requisite documents to subscribe under the PMVVY scheme:

  • Aadhaar card
  • Proof of age
  • Proof of address
  • Passport size photo of the applicant
  • Documents indicating that the applicant has retired from employment

Benefits of Pradhan Mantri Vaya Vandana Yojana

The following are some of the key benefits of subscribing to PMVVY scheme:

  • The PMVVY scheme provides subscribers with an assured return at the rate of 8% to 8.3% for 10 years
  • The PMVVY scheme provides a fixed sum regularly
  • The entire amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed
  • Loan of up to 75% of the purchase price can be availed after three years to cover emergencies
  • Due to medical emergencies (self and spouse), the subscribers can withdraw 98% of the purchase price
  • If the subscriber passes away within the term of the policy, then the nominee would be paid out with the purchase price

Application Procedure

One can subscribe to the PMVVY scheme in the following ways:

i) Online procedure:

  • Log onto the official website of LIC
  • Select ‘pension plans’ under products and proceed
  • Fill the relevant application form
  • Submit the online application and upload the documents as requested

ii) Offline Procedure

  • Collect the application form at any of the LIC branches
  • Duly fill the application form
  • Submit the duly filled application form by attaching all relevant documents

Pension Policy

As mentioned earlier, the minimum purchase price is Rs 1,50,000 for a monthly pension of Rs 1,000. The amount of pension that a subscriber receives would depend on their purchase price:

Pension mode
Minimum amount of pension
Minimum amount of investment
Maximum amount of pension
Maximum amount of investment
Monthly
Rs 1,000
Rs 1,50,000
Rs 10,000
Rs 15,00,000
Quarterly
Rs 3,000
Rs 1,49,068
Rs 30,000
Rs 14,90,684
Bi-annually
Rs 6,000
Rs 1,47,601
Rs 60,000
Rs 14,76,014
Annually
Rs 12,00
Rs 1,44,578
Rs 1,20,000
Rs 14,45,784

PMVVY is a great investment option for senior citizens. This scheme can be considered by those senior citizens that are looking for a regular pension. However, to invest in this scheme, one should have a considerable amount in hand.

Frequently Asked Questions

Interest Rates of the return changes or is it fixed for the pension scheme?

The rate of interest is fixed at 8% to 8.3% for 10 years.

In case of an emergency, how much contribution can be withdrawn?

In case of a medical emergency (self and spouse), the subscribers can withdraw 98% of the purchase price.

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List of Union Government Schemes for Businesses

Senior Citizens Saving Scheme

National Pension Scheme

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