Pradhan Mantri Vaya Vandana Yojana is a type of pension scheme announced by the Government of India for senior citizens above 60 years and is operated by the Life Insurance Corporation (LIC). This scheme aims to offer financial support to senior citizens by providing them with regular pensions when there is a fall in interest rates. The plan was started from 4th May 2017 to 31st March 2020, which is now further extended up to 31st March 2023.
Now that you know what is Pradhan Mantri Vaya Vandana Yojana, let’s dig deeper to understand the PMVVY scheme details.
Pradhan Mantri Vaya Vandana Yojana Benefits
Keep scrolling through to know the details of benefits that the policyholder gets under this government scheme:
- Under this scheme, the policyholder will receive an assured return of 8% per annum for the policy duration.
- If the policyholder survives the period, the pension will be paid to them in arrears.
- If the policyholder dies away during the tenure, the purchase price would be paid back to the beneficiary.
- If the policyholder survives the policy period, the purchase price will be paid back to the policyholder and the final pension instalment.
- After three years of the policy, the policyholder can avail of the benefits of a loan against it. The interest on the loan amount will be recovered from the pension payment that the policyholder makes. If the loan has been sanctioned by 30th April 2018, its interest rate is 10% p.a. and can be paid half-yearly throughout the policy term. PMVVY loan facility is one of the reasons behind the massive popularity of the scheme.
- If the policyholder is not satisfied with the terms of the policy, they can surrender the policy within 15 days. However, if the procedure is bought online, the free-look period is of 30 days.
Eligibility Criteria for PMVVY
Before applying for the PMVVY scheme, you need to check the following eligibility criteria:
- The individual must be of 60 years or above.
- There is no maximum limit for entry.
- The tenure of the PMVVY scheme is ten years.
- The minimum pension that can be paid monthly, quarterly, half-yearly, and yearly are ₹1,000, ₹3,000, ₹6,000, and ₹2,000, respectively, and the maximum limit can range from ₹10000, ₹30000,₹60000, and ₹1,20,000 respectively.
While deciding the pension ceiling, the entire family is considered.
Documents Required for the PMVVY
Here are the necessary documents one must submit before enrolling on Pradhan Mantri Vaya Vandana Yojana -
- Aadhaar Card
- Proof of Age
- Proof of Residence
- Passport size photos of the applicant
- Relevant Document/Declaration to show the retired status of the applicant
Are you wondering how does Pradhan Mantri Vaya Vandana Yojana work?
Keep scrolling through the blog.
How to Apply to PMVVY?
One can apply for Pradhan Mantri Vaya Vandana Yojana via online and offline modes. To apply for this scheme, you need to follow the below-mentioned steps:
Offline Process:
- Take the application forms from any of the LIC branches
- You must then fill the form with the relevant details
- Next, you will have to attach all the essential self-attested documents
- After following all these steps, one must submit the form by attaching all the documents at any LIC branch
Online Process:
- Visit the official LIC website
- Click on “Products”
- Search for “Pension Plans”
- Fill out the application form that is available under “Buy Policies.”
- Submit the form and self-attested document soft copies for further process
Pension Payment Modes
Under the Pradhan Mantri Vaya Vandana Yojana, the pension can be made monthly, quarterly, half-yearly or annually according to the policyholder’s preference. The payment for the retirement can be made via Aadhaar Enabled Payment System or National Electronics Fund Transfer (NEFT).
Maximum Investment in PMVVY
Under the PMVVY scheme, the policyholder can invest in an amount of up to ₹1.5 lakhs. This limit applies to the primary investor. To avail of the return of ₹1,000 per month from the scheme, you must have a minimum investment of ₹1.5 lakhs.
Conclusion
PMVVY is a risk-free investment option for senior citizens above the age of 60 years. The pension from this scheme acts as a regular source of income to support the financial needs of retired individuals. However, one must have sufficient liquid funds to invest in this scheme.
