Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Source: dnaindia.com

The Indian Government launched a scheme named the Pradhan Mantri Vaya Vandana Yojana to protect the senior citizens and their income from interest from unsure market conditions. Individuals aged over 60 years can purchase Pradhan Mantri Vaya Vandana Yojana online and get an assured return upon investing the minimum amount.

Want to know more about this Government scheme? Read along!

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a retirement cum pension scheme launched in 2017. Life Insurance and Corporations of India, the country’s leading life insurance provider, implements this scheme.

This scheme allows senior citizens to initially pay a minimum amount of ₹150000 to get a monthly pension of at least ₹1000. Here, the highest amount is set at ₹1500000 for receiving a maximum allowance of ₹10000 per month.

Subscribers of this scheme can get guaranteed monthly pensions based on Pradhan Mantri Vaya Vandana Yojana interest rate. This is an annual rate of 7.40%.

The Government of India introduced this scheme after successfully implementing Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes. Further, the Central Government modified this scheme in 2020, brought changes in the pension’s interest rate, and extended the date for selling this plan till 31st March 2023, from FY 2020-21.

As the definition of the Pradhan Mantri Vaya Vandana Yojana is clear to you, let’s learn about the eligibility and documentation requirements and benefits of this Government scheme.

Individuals have to fulfil specific eligibility parameters to be able to invest in the Pradhan Mantri Vaya Vandana Yojana online.

These are as follows -

• Applicants have to be Indian citizens.
• Age of the applicant must be above 60 years.

Note: This scheme has a 10-year policy term. Hence, senior citizens must be ready to avail a policy for such a long time.

This Government-backed scheme was introduced primarily to protect senior citizens by providing income in their retirement age. Read on the following section to learn about benefits and features of Pradhan Mantri Vaya Vandana Yojana scheme.

Pension Benefits

If a pensioner survives a 10-year policy term, he/she will get pension when the period is over, based on the chosen mode.

Maturity Advantages

Similar to pension benefits, if a pensioner survives a 10-year policy term, he/she will get the purchase price and the final pension instalment.

Assured Return

This scheme offers a guaranteed rate of interest for a 10-year policy term. This pension payment may differ, subject to the selected pension payment mode.

Death Benefits

If an applicant dies within the 10-year policy term, his/her investment amount, i.e. purchase price, will be refunded to the beneficiary.

Loan Facility

Senior citizens can enjoy loan facilities under this scheme provided they have completed 3 policy years. Here, the maximum loan amount that is available for loan facility is 75% of the purchase price. For instance, if you have invested ₹150000 in this scheme, you will get ₹112500 (75% of ₹150000) after 3 years.

Surrender Opportunity

Pradhan Mantri Vaya Vandana Yojana allows applicants to exit during policy term before the maturity period. This opportunity is available under special circumstances, such as the subscriber needing money to cover medical expenses for critical or terminal health conditions of spouse or self. Under such circumstances, a pensioner can withdraw 98% of purchase price.

Now that individuals know about the required documents, eligibility criteria, the application process will be easier to understand.

Individuals can subscribe to this scheme in two ways. These are as follows –

Online Procedure to Apply for Pradhan Mantri Vaya Vandana Yojana

• Step-1: Log on to the official LIC portal of and choose ‘Pension Plans’ under products.
• Step-2: Download the Pradhan Mantri Vaya Vandana Yojana application form and fill it up with correct information.
• Step-3: Upload all documents and submit application form.

Offline Procedure to Apply for Pradhan Mantri Vaya Vandana Yojana

• Step-1: Go to your nearest branch of LIC.
• Step-2: Collect the Pradhan Mantri Vaya Vandana Yojana application form and fill it in with essential information.
• Step-3: Attach all required documents and submit the duly filled-in form.

Here is a list of documents required for Pradhan Mantri Vaya Vandana Yojana,

• Aadhaar card
• Proof of address
• Proof of age
• Documents declaring the applicant have retired
• Passport size photographs