Pradhan Mantri Vaya Vandana Yojana ( प्रधान मंत्री वय वंदना योजना ) is an insurance policy-cum- pension scheme that gives alternative avenues of income to senior citizens of the country. This is a scheme offered by the Life insurance Corporation (LIC) of India which gives a guaranteed payout of pension at a specified rate for 10 years.
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension scheme, meant for senior citizens, has now been extended till March 31, 2023. This scheme was open till March 31, 2020.
The PMVVY is to Protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, it’s decided to launch a simplified scheme of assured pension of 7.5% called the प्रधान मंत्री वय वंदना योजना.
Pradhan Mantri Vaya Vandana Yojana is being implemented through life insurance Corporation (LIC) of India. As per the scheme, on payment of an initial Lump sum payment amount starting from a minimum purchase price of Rs. 1, 50,000/- for a minimum pension of Rs. 1000/- per month to a maximum purchase price of Rs. 1 5,00,000/- for a maximum pension of Rs. 9,250/- per month, subscribers will get an assured pension based on a guaranteed rate of return of 7.4 % p.a. , payable monthly.
Following are the Minimum and maximum Purchase price under different modes of Pension:–
| Mode of Pension | Minimum Purchase Price | Corresponding Pension Amount |
|---|---|---|
| Yearly | Rs. 1,56,658/- | Rs. 12,000/- p.a. |
| Half-Yearly | Rs. 1,59,574/- | Rs. 6,000/- per Half year |
| Quarterly | Rs. 1,61,074/- | Rs. 3,000/- per Qtr. |
| Monthly | Rs. 1,62,162/- | Rs. 1,000/- per month |
| Mode of Pension | Maximum Purchase Price(Rs) | Corresponding Pension Amount |
|---|---|---|
| Yearly | Rs. 14,49,086/- | Rs. 1,11,000/- p.a. |
| Half-Yearly | Rs. 14,76,064/- | Rs. 55,500/- per half year |
| Quarterly | Rs. 14,89,933/- | Rs. 27,750/-per Qtr. |
| Monthly | Rs. 15,00,000/- | Rs. 9,250/-per month |
How to apply PMVVY online?
You can apply or buy the PMVVY scheme from the life insurance corporation of India. This pension scheme is available both offline and online mode. and if you want it offline then visit the closest LIC branch or otherwise go online to the official website of LIC to get this annuity scheme.
You can apply for Pradhan Mantri Vaya Vandana Yojana online through the subsequent steps:-
- Step 1: Go to the official website of the Life Insurance Corporation(LIC) of India.
- Step 2: After that, select the ‘Buy Policy Online’ header, click on the “Pradhan Mantri Vaya Vandana Yojana” option.
- Step 3: Now, click on the designated button no. 856 for the ‘Buy Online’ option. now ‘Click to Buy for Online’ option on the left side corner of the page.
- Step 4: Within the next step, create an Access ID to proceed further. Provide contact details like name, email ID, mobile number, date of birth, address, and servicing unit to get the ID. you’ll receive this 9 digit Access ID either by SMS at the registered mobile number or through email.
- Step 5: Now, submit the Access ID and hit the ‘Proceed’ button.
- Step 6: now at last, after selecting a pension plan under Pradhan Mantri Vaya Vandana Yojana, fill up the application form, and upload scanned copies of the specified documents and make payment. After the successful submission of the application form, you’ll be given an acknowledgement and policy number.
Required Documents for Pradhan Mantri Vaya Vandana Yojana:-
- Aadhaar card
- PAN card
- Details of the bank account where he wants the pension to be credited every month.
What is the Tax Benefits under the PMVVY Pension Scheme ?
Pradhan Mantri Vaya Vandana Yojana (PMVVY) does not provide tax deduction benefits under section 80C of the Income Tax Act,1961. Interest Income or pension from this scheme will be taxed as per existing tax laws. The scheme is exempted from Goods and Services Tax (GST).
Loan Benefits to Pensioner ?
Any Pensioner or policyholder can apply for loans after completion of three years. The maximum amount of loan that can be granted shall be 75% of the purchase price. The interest on the loan will be recovered from the pension payment or Interest payout that is being made through NEFT or Aadhaar-enabled payment system.
Maturity Benefits to Pensioner ?
If the policyholder survives till the end of the policy term of 10 years, the purchase price or Investment amount of the policy along with the final pension installment will be payable to the policyholder. or
If the policyholder dies during the policy term of 10 years, the purchase price or investment value of the annuity scheme will be refunded to the beneficiary.
