Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government scheme designed for senior citizens aged 60 and above. Its objective is to assist in post-retirement planning for the elderly by providing them with various financial benefits.

With a term of 10 years, the PMVVY offers pension and retirement benefits, making it a convenient alternative to traditional bank deposits. Payment options are flexible as well. Keep reading to learn about the PMVVY interest rate, eligibility criteria, benefits, key features, and more.

Features & Benefits of PMVVY

The features & benefits of Pradhan Mantri Vaya Vandana Yojana (PMVYY) are:

• Maturity benefit: In the case where the pensioner is alive till the end of the tenure, the scheme provides a lump sum amount of the plan’s purchase price along with the last installment.
• Death benefit: This is when the nominee will receive the entire investment made by the pensioner upon the pensioner’s death. The beneficiary must submit the necessary documents to attain the claim.
• Loan facility: After the completion of 3 years, policyholders will attain 75% of the purchase price as a loan, which can be used to meet any financial needs.
• Free lock-in period: Based on whether the policy is purchased online or offline, there are free lock-in periods accordingly. That is 15 days for offline purchases and 30 days for online purchase.
  The free lock-in period helps the individual to return to the scheme or opt out of it if needed. The individual will be refunded the investment amount after deductions of released payment or stamp duty.
• Financial security: Vandana Yojana is a consistent and trusted source of income for senior citizens after retirement for up to 10 years. The individual receives a fixed amount every month based on the amount they have invested in the scheme.
• Periodic payout options: Subscribers can opt for different types of payment modes such as monthly, quarterly, half-yearly, and yearly.
• Surrender value: In case of emergency scenarios, the subscriber will receive 98% of his investment as surrender value.

Pradhan Mantri Vaya Vandana Yojana Eligibility

The eligibility criteria to apply for the Pradhan Mantri Vaya Vandana Yojana (PMVVY) are as follows:

• The minimum age should be 60 years.
• The applicant must be an Indian citizen or NRI.
• The minimum investment is ₹ 1.5 lakh and the maximum is ₹ 15 lakh.

Documents Required For PMVVY

The documents required for the PMVVY are as follows:

• Aadhar Card
• PAN Card
• Bank account details

Application Process For PMVVY

You can apply for the PMVVY scheme either online or offline. Here are the steps to take for each:

PMVVY Online Registration

• Visit the official website of Life Insurance Corporation (LIC).
• Go to Buy Policy Online section.
• Click on the Pradhan Mantri Vaya Vandana Yojana (PMVVY) option.
• Click on the ‘Buy Online’ option.
• Create an Access ID
• Click on ‘Proceed’ to complete the application.
• Select the pension plan of your preference and fill out the details as required.
• Upload the scanned copies of the requested documents.
• Complete the payment.

Once the application process has been completed, the applicant will receive an acknowledgment and the policy number.

PMVVY Offline Registration

Here are the steps to apply offline for the Pradhan Mantri Vaya Vandana Yojana (PMVVY).

• Visit the nearest bank branch of LIC of their preference.
• Invest the amount or purchase price.
• Complete the application form and submit the necessary documents.
• Pay the necessary amount.

PMVVY Payment for Purchase Amount

The payment for purchasing the Pradhan Mantri Vaya Vandana Yojana can be made in monthly, quarterly, half-yearly, and yearly installments. The maximum purchase amount is ₹ 15 lakh and the minimum amount is ₹ 1.5 lakh. Accordingly, the minimum and maximum pension amount earned may vary.

Check out the table below to have a better understanding:

Returns Under Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana provides a return on investment (ROI) in the beginning, which resets every year. For 2023-2024, it is 7.40% per annum.

Loan Against Pradhan Mantri Vaya Vandana Yojana

As mentioned earlier, one of the benefits of the PMVVY is that it provides a loan facility, which allows the pensioner to access a loan against the scheme after the first 3 years.

A maximum of 75% of the investment or purchase amount can be availed. Hence, policyholders can apply for a loan against the PMVVY to meet their financial needs in case of emergency scenarios.

To apply for a loan against PMVVY, here are the steps to follow:

• Contact the insurance provider to learn more about the loan facility and inform them of your application.
• Submit the required documents including the loan application form.
• Next, the insurance provider will start the loan processing procedure. The surrender value is assessed and the loan amount is calculated.
• After the loan application is approved, the amount will be credited directly to the applicant’s bank account.

Taxation Provisions Under PMVVY Scheme

As per Section 80C of the Income Tax Act, 1961, the investment amount paid by the individual under the PMVVY is not included in the income tax deduction. However, the return on interest is included in the tax, and the pension amount includes TDS deductions.

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Early Withdrawal from the PMVVY Scheme

In cases where the pensioner or his spouse suffers from a critical health condition, the individual can withdraw from the scheme, where 98% of the investment amount will be returned. The remaining 2 % is charged as a premature exit penalty.

PMVVY Complaint Number

For any queries or concerns, contact the respective agents at 02267819281 or 1800227717.