Pradhan Mantri Vaya Vandana Yojana: Benefits, Interest Rates and Eligibility

On a daily basis, we often come across several social security schemes offered by the government of India. While most of us have heard about the National Pension Scheme, Public Provident Fund (PPF), Atal Pension Yojana and many more, there is a new addition to the list named Pradhan Mantri Vaya Vandana Yojana. Also known as PMVVY, it is a pension scheme regulated by India’s largest life insurance provider- LIC or Life Insurance Corporation of India.

Scroll down to know about Pradhan Mantri Vaya Vandana Yojana, its benefits, interest rates and more.

What is Pradhan Mantri Vaya Vandana Yojana?

Pradhan Mantri Vaya Vandana Yojana is a pension scheme launched in May 2017 by the Indian government. The PMVVY scheme has been exclusively designed for senior citizens above 60 years of age or more. The plan is provided by the LIC (Life Insurance Corporation of India) that caters to the financial needs of individuals post their retirement.

The amount invested in the scheme by the purchasers is called the purchase price, and the plan guarantees an assured return rate on investment. Under this scheme, subscribers receive regular pensions on a monthly, quarterly or yearly basis. The PMVVY LIC is an excellent alternative to other bank deposits.

Pradhan Mantri Vaya Vandana Yojana: Benefits and Features

Below are some of the key features and benefits of the Pradhan Mantri Senior Citizen Saving Scheme you should know about:

• Subscribers will get an assured return rate of 7.40% per annum for 10 years.
• Under this scheme, you will receive a fixed sum regularly.
• Subscribers will receive the entire amount, including the purchase price and the final pension, after the completion of the policy term of 10 years.
• You can avail loan of up to 75% of the purchase price for emergencies once three years are completed.
• In case there is any medical emergency (for you or your spouse), you can withdraw 98% of the purchase price.
• In cases where a subscriber passes away during the policy term, the nominee will receive the purchase price.

Pradhan Mantri Vaya Vandana Yojana: Eligibility Criteria

PM Vaya Vandana Yojana does not have specific eligibility criteria for the subscribers. You must be a senior citizen aged 60 years and above and an Indian citizen to be eligible for the scheme. In addition, the subscriber must avail of the policy for the term of 10 years.

Purchase Price Payment for Different Periodic Payouts under PMVVY

Subscribers can purchase the PMVVY scheme by making a payment of a lump sum purchase price. You can choose between the pension amount and the purchase price.

Check below for PMVVY scheme details, including the purchase price to be paid for different periodic payouts under the scheme:

The mode of pension payment could be NEFT or Aadhaar Enabled Payment System.

Pradhan Mantri Vaya Vandana Yojana Minimum and Maximum Pension Amount

LIC PMVVY has a minimum purchase price limit of Rs 1.5 lakh, wherein you receive a monthly pension of Rs 1,000. The maximum purchase price limit is Rs 15 lakhs under this scheme, wherein you receive a monthly pension of Rs 10,000.

Pradhan Mantri Vaya Vandana Yojana Interest Rates

Subscribers of LIC Pradhan Mantri Vaya Vandana Yojana will get a government return of 7.40% per annum, which is payable every month. In case someone has subscribed for a monthly pension scheme, the interest rate equals 7.66% per annum. In addition, taxes like GST or Service Tax are exempted from LIC Vaya Vandana Yojana since it operates as a pension plan.

Pradhan Mantri Vaya Vandana Yojana: Application Process

You can subscribe to the Pradhan Mantri Vaya Vandana Yojana scheme online as well as offline. Check the below-mentioned application procedure for both:

Steps for Online Application

• Log in to the official portal of LIC
• Go to the products section, choose “pension plans” and proceed
• Fill in the details in the application form
• Submit the form and upload the required documents

Steps for Offline Application

• Visit any of the LIC branches and collect the application form
• Fill in the details in the application form
• Submit the form along with all required documents

Tax Benefits Offered under Pradhan Mantri Vaya Vandana Yojana

If the Indian Government or constitutional Authority of India imposes any taxes such as Statutory Tax or any other tax, it will be imposed under the tax laws. However, the calculation of the entire benefit paid under the policy of pension will not include the tax paid.

Pradhan Mantri Vaya Vandana Yojana: Required Documents

Below are the documents required to subscribe under Pradhan Mantri Vaya Vandana Yojana:

• Age proof
• Address proof
• Aadhaar Card
• The applicant’s passport size photograph
• Documents or any retirement proof of the applicant

Pradhan Mantri Vaya Vandana Yojana Helpline Contact Details

Pradhan Mantri Vaya Vandana Yojana toll-free numbers are 1800 11 0001 and 1800 180 1111.

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