Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme launched by the Government of India in May 2017. The scheme is aimed at providing social security to senior citizens aged 60 years and above. Under the PMVVY, senior citizens can invest a lump sum amount and receive a guaranteed pension at a fixed rate of return for 10 years. The scheme is available for purchase until March 31, 2023. (Let’s see PMGKY article)

PMVVY as a Central Gov Scheme

Contents hide

1 PMVVY as a Central Gov Scheme

1.1 Aim

1.2 Need

1.3 Features

1.4 Eligibility Criteria

1.5 Application Procedure

1.6 Benefits

2 Conclusion

PMVVY

The scheme is administered by the Life Insurance Corporation of India (LIC) and provides an assured return of 7.4% per annum for the financial year 2021-22. The maximum investment limit under this scheme is Rs. 15 lakh per senior citizen. The pension can be received monthly, quarterly, half-yearly, or yearly as per the investor’s preference. The PMVVY scheme is considered a safe investment option for senior citizens as it provides a guaranteed return and regular income, making it a suitable option for those looking for a reliable retirement income stream.

Aim

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-sponsored pension scheme that aims to provide financial security and stability to senior citizens aged 60 years and above. The scheme is implemented by the Life Insurance Corporation of India (LIC).

The main objective of PMVVY is to provide a regular pension income to senior citizens and protect them against market volatility. It offers a guaranteed pension payout of 7.4% per annum for a policy term of 10 years, which is payable monthly, quarterly, half-yearly, or annually, as per the policyholder’s preference. The scheme also offers a death benefit to the nominee of the policyholder.

PMVVY is a risk-free investment option for senior citizens who do not want to take any market risk but still want to earn a regular income. The scheme provides financial security to senior citizens during their old age, when they may not have a regular source of income.

Need

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the Government of India to provide financial security to senior citizens who are above 60 years of age. The scheme is administered by the Life Insurance Corporation of India (LIC) and is available for subscription until March 31, 2023.

The need for PMVVY arises from the fact that senior citizens face several financial challenges after retirement, including a reduced or no regular income, increasing healthcare costs, and inflation. PMVVY addresses these challenges by providing a guaranteed return of 7.40% p.a. payable monthly for 10 years, making it an attractive investment option for senior citizens.

PMVVY also offers flexibility in terms of the pension payment mode, with options to receive monthly, quarterly, half-yearly, or yearly pension payments. The scheme also provides a loan of up to 75% of the purchase price after completion of three policy years, which can be used to meet any unforeseen expenses.

In summary, the need for PMVVY is to provide a reliable and secure pension option to senior citizens, who are often vulnerable to financial instability and need financial security in their retirement years.

Features

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the Government of India. Here are some of the key features of PMVVY:

Eligibility: The scheme is available to senior citizens aged 60 years and above.
Investment limit: The minimum investment in the scheme is Rs. 1.5 lakh and the maximum investment is Rs. 15 lakh.
Guaranteed returns: PMVVY offers guaranteed returns at a fixed interest rate of 7.4% per annum payable monthly for the entire policy term of 10 years.
Policy term: The policy term is 10 years, and the pension payment frequency is monthly, quarterly, half-yearly, or yearly.
Death benefit: In case of the policyholder’s demise during the policy term, the purchase price will be refunded to the nominee/legal heirs.
Surrender value: The policy can be surrendered after completion of 3 years from the commencement date. The surrender value will be 98% of the purchase price.
Loan facility: Loan facility is available after completion of 3 policy years. The maximum loan amount will be 75% of the purchase price.
Taxation: The pension received under PMVVY is taxable under the Income Tax Act, 1961.

Overall, PMVVY is a good pension scheme for senior citizens who are looking for a guaranteed source of income during their retirement years.

Eligibility Criteria

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the Government of India for senior citizens aged 60 years and above. The eligibility criteria for this scheme are as follows:

The applicant must be a citizen of India.
The applicant must be 60 years of age or above at the time of purchase of the policy.
There is no maximum age limit to avail of the benefits of this scheme.
The scheme can be purchased by paying a lump sum amount.
The policy term is 10 years, and the pensioner can choose the mode of pension payment- monthly, quarterly, half-yearly, or yearly.
The minimum pension amount is Rs. 1,000 per month, and the maximum pension amount is Rs. 9,250 per month.
The scheme offers a guaranteed return of 7.40% per annum payable monthly for the policy term of 10 years.

It is important to note that the PMVVY scheme is available for a limited period only and may be extended by the government from time to time.

Application Procedure

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens aged 60 years and above, which is operated by the Life Insurance Corporation of India (LIC). The application procedure for PMVVY is as follows:

Visit the nearest LIC branch or website: You can visit the nearest LIC branch or visit the LIC website to apply for the PMVVY scheme.
Fill the application form: You will have to fill in the PMVVY application form with your personal and contact details, such as name, age, address, mobile number, etc.
Provide KYC documents: You will also have to provide Know Your Customer (KYC) documents such as Aadhaar card, PAN card, Voter ID, Passport, or any other relevant documents.
Choose the pension option: You can choose the pension option and the amount of pension you want to receive, depending on your investment amount.
Make the payment: You will have to make the payment for the PMVVY scheme through online or offline modes. You can pay through net banking, debit or credit card, or through a demand draft.
Receive confirmation: Once the payment is made and the application is processed, you will receive a confirmation message from LIC regarding the policy details and payment.

In case of any further queries, you can contact the LIC customer care helpline or visit the nearest LIC branch for assistance.

Benefits

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the Government of India to provide a regular and guaranteed source of income to senior citizens aged 60 years and above. Here are some of the benefits of PMVVY:

Guaranteed income: PMVVY offers a fixed rate of return of 7.4% per annum for a period of ten years. This means that senior citizens who invest in this scheme can be assured of a regular income for ten years.
Tax-free returns: The returns from PMVVY are tax-free, which means that senior citizens can enjoy their income without worrying about taxes.
Loan facility: PMVVY offers a loan facility to its policyholders. Senior citizens can avail of this facility after three years of policy purchase, up to 75% of the purchase price.
Surrender value: If policyholders need to surrender their policy due to an emergency or other reasons, they can do so after three years of policy purchase. The surrender value will be 98% of the purchase price.
Death benefit: In the event of the policyholder’s death, the nominee will receive the purchase price of the policy.
No maximum investment limit: There is no upper limit on the investment amount in PMVVY. However, the pension amount will be restricted based on the investment made.

Conclusion

Overall, PMVVY is a beneficial scheme for senior citizens who are looking for a guaranteed source of income with the added benefits of tax-free returns and a loan facility.