Pradhan Mantri Vaya Vandana Yojana (PMVVY) Complete Details regarding Scheme

About Pradhan Mantri Vaya Vandana Yojana (PMVVY): This is a pension plan for senior citizens who are 60 years and above. Under this scheme, senior citizens will get a guaranteed return of 8% for 10 years. This plan is exempted from Goods and services tax (GST). The scheme will be available for one year from the date of launch. LIC has already sold 58,152 policies so far and collected Rs. 2,705 crores since its soft launch on 4th May 2017. This policy can be purchased online as well as offline.  The plan UIN is 512G311V01.

Scheme Details:

  • The investment limit has been increased to 15 lakhs under the Pradhan Mantri Vaya Vandana Yojana (PMVVY). The earlier limit was 7.5 lakhs.
  • The last date to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been extended to 31st March 2020. It was earlier supposed to end on 4th May 2018
  • The limit on maximum investment has now been revised to per senior citizen(and not per family). So now in a family, if both husband and wife are senior citizens. Both can invest 15 lakhs each as the purchase price (total 30 lakhs) and can enjoy a bonus facility.

Eligibility Criteria for Pradhan Mantri Vaya Vandana Yojana:

Minimum Maximum
Age 60 Years (Completed) No Limit
Policy Term 10 Years
Pension Mode Monthly, Quarterly, Half-yearly, or Yearly
Purchase Price Rs. 1,50,000 for monthly
Rs. 1,49,068 for quarterly
Rs. 1,47,601 for half-yearly
Rs.1,44,578 for yearly
Rs. 15,00,000 for monthly
Rs. 14,90,683 for quarterly
Rs. 14,76,015 for half-yearly
Rs. 14,45,783 for yearly
Pension Amount Rs. 1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year
Rs. 10,000/- per month
Rs. 30,000/- per quarter
Rs. 60,000/- per half-year
Rs. 1,20,000/- per year

Benefits of Pradhan Mantri Vaya Vandana Yojana:

On survival of the policyholder during the policy term of 10 years, pension is payable at the end of each period as per the mode of monthly/ quarterly/ half yearly/ yearly as chosen by the pensioner at the time of purchase.
For every Rs. 1,000 invested in the plan,

  1. Rs. 80 will be paid out in the monthly mode
  2. Rs. 80.5 paid out in the quarterly mode
  3. Rs. 81.3 will be paid out in the half-yearly mode
  4. Rs. 83 paid out in the yearly mode

Death Benefit:

On the death of the policyholder during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.

Maturity Benefit:

On survival of the policyholder to the end of the policy term of 10 years, the Purchase price along with the final pension installment shall be returned.

Surrender Value:

The policy allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of the Purchase Price.

Loan:

A loan facility is available after the completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price
For the financial Year 2016-17, the applicable interest rate to be charged is 10% p.a.

Free Look Period:

If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason for objections.
In this case, the policyholder will get the entire amount after deducting the charges for Stamp duty and pension paid (if any).

Exclusion:

Suicide – There shall be no exclusion on the count of suicide and the full Purchase Price shall be payable.

Tax Benefit:

The deposits made in the scheme are exempt from income tax under section 80C of the Income Tax Act, 1961. However, the interest earned on the deposit is not exempt from income tax. Provisions of Tax Deduction at Source (TDS) are applicable to the Scheme.

Documents required:

One is advised to keep the mentioned documents ready to buy Pradhan Mantri Vaya Vandana Yojana:

  • Identification purposes: Passport, Aadhar card, Birth certificate, driving license, Voter ID card, Ration card, etc.
  • For address verification: Above mentioned documents, Gas bill, Electricity bill, maintenance bill, etc.
  • Income tax statements, Bank statements, photographs, Credit scores, etc., may also be needed.

Mode of Pension Payment:

Mode of Pension Payment Rate of Interest (p.a) for FY 21-22
Monthly 7.40%
Quarterly 7.45%
Half-Yearly 7.52%
Yearly 7.66%

Important Links

Official Website Click Here
Go to Sarkari Result Click Here

Leave a Comment


You Might Be Interested In:

  • PAN Card Status – Track Pan Application Status Online 2024
  • E Shram Card Registration, Online Form 2024
  • UP Scholarship 2024 Form – Apply Online
  • Haryana Voter List 2022 Download Ward Wise PDF
  • UP Ration Card Holder New List 2024 | Find Ration Card | Apply For new