PMVVY ( Pradhan Mantri Vaya Vandana Yojana ) is a pension scheme introduced by the government of India under the National Savings Scheme. This scheme was earlier available from 4th March 2017 to 31st March 2020 but as per the Government of India’s Press release dated on May 20, 2020, availing the benefit of this scheme has been extended for three more financial years i.e. till March 31, 2023.
PM Vaya Vandana is a scheme that is available to senior citizens of our country. The main aim of this pension scheme is to provide residential individuals above the age of 60 years a regular source of income during their retirement days. Life Insurance Corporation is granted the primary right to run this scheme and one can get this pension plan from there. One of the main advantages of PMVVY is that it guarantees a regular source of income for 10 years on a monthly, quarterly, semi-annually or annual basis. Currently, the rate of interest offered per annum is 7.4% for 2020-2021. In future, this rate of interest will be revised to keep it in tandem with SCSS (Senior Citizen Savings Scheme) starting from April 1 of every financial year.
Residential individuals can invest in PM Vaya Vandana Yojana if they fall under the following eligibility criteria:
|Mode of Payment||The minimum amount of Pension||A minimum amount of Purchase Price||Maximum Amount of Pension||Maximum Amount of Purchase Price|
|Monthly||INR 1000||INR 1,56,658||INR 9,250||INR 1,449,086|
|Quarterly||INR 3000||INR 1,59,574||INR 27,750||INR 14,76,064|
|Semi-Annually||INR 6000||INR 1,61,074||INR 55,500||INR 14,89,933|
|Annually||INR 12000||INR 1,62,162||INR 1,11,000||INR 15,00,000|
Investing in PM Vaya Vandana Yojana can have many positive outcomes, some of which are as follows:
A senior citizen who is purchasing PMVVY is eligible to claim a deduction of INR 1,50,000 on the deposit amount under section 80C. The interest amount received is however taxed as per the respective tax slabs applicable to the taxpayer.
In case of emergencies for self and spouse, one can use the funds of this scheme and as per the rules, they will get 98% of the purchase price as a surrender value.
After completion of more than 3 years of this policy, one can also avail loan against the investment of PMVVY up to 75% of the purchase price.
Pradhan Mantri Vaya Vandana Yojana upon maturity of the tenure provides the entire purchase price in lump sum provided that the pensioner survives till the end of the completion of the policy. In case of unprecedented death of the pensioner during the tenure of the policy, the nominee or the beneficiary can claim a complete purchase amount by submitting the relevant documents.
An individual can register for PMVVY either online or offline. Following documents needs to be submitted while applying for this pension scheme
Following are the steps to apply for PMVVY online:
Go to the website of LIC
Go to ‘Buy Policy Online’ section, click on Pradhan Mantri Vaya Vandana Yojana
Now, click on the button no. 842 for the ‘Buy Online’ option and now select the ‘Click to Buy Online’ option
Now create an Access ID and add in all the relevant details. You will receive this 9 digit Access ID either by SMS at the registered mobile number or through email
Now, submit the Access ID and click on ‘Proceed’
Lastly, select the appropriate pension plan under Pradhan Mantri Vaya Vandana Yojana, fill up the application form and upload relevant documents
One can also visit the nearest LIC branch and fill out the application form and opt for PMVVY.
Yes, an individual can invest in both these schemes at the same time.
A policyholder can return the policy within 15 days if purchased offline and in 30 days if this policy is purchased online, from the date of issuance of the policy mentioning the reason for the disagreements. The amount to be reimbursed during the duration will be the purchase price paid by the policyholder after the deduction of Stamp Duty and pension paid if any.
The pension payment is initiated via NEFT or Aadhaar Enabled Payment System.