Pradhan Mantri Vaya Vandana Yojana – A pension scheme initiative launched by PM Modi Government. This scheme focuses on giving a pension scheme to the senior citizens. The scheme provides the nominee of the bond to avail the full purchase price of the bond after the policyholder dies. This facility is also known as the death benefit.
Pradhan Mantri Vaya Vandana Yojana
In this, upon the death of the policyholder, the nominee of the bond can get the full benefits of the bond by getting the purchase price of the policy. So basically, the concerned organization take hold of the amount of purchase and it will give some money at specified interest rates at mentioned intervals. When the policyholder dies, then the nominee can get the full amount of which the policyholder purchased the policy.
The policy is open to purchase until March 31, 2023. It provides senior citizens a pension at specific intervals at a specified rate for 10 years. There is no limitation upon the maximum age that one can be to enter the scheme. However, the minimum age to enter the scheme is 60 years. And the purchase limit per person has limited to Rs 15 lakh.
PMVVY Scheme Eligibility Criteria
To be eligible to purchase a policy bond in the Pradhan Mantri Vaya Vandana Yojana Scheme, you must be eligible on the following eligibility criteria:
- You must have completed the age of 60 years if you are willing to enter in the scheme.
- There is a limit on the maximum age of the applicant.
- The investment limit per person has limited to Rs 15 lakh per senior citizen.
- The interest rate is specified at 8% for 10 years
Essential Documents To Apply For PMVVY
You must have the original documents along with the copy of the following documents:
- Aadhar Card
- PAN card
- Cheque leaf or the first page of the beneficiary’s bank account passbook
How To Apply Pradhan Mantri Vaya Vandana Yojana
You can purchase the policy bond in both the online and offline modes. In the roofline mode, you have to fill up a form and attach the required documents with the form. You can also purchase the bond by visiting the website of LIC. Also, check here on how to apply PM Kisan Samman Nidhi Yojana by clicking the link.
Benefits Covered Under Pradhan Mantri Vaya Vandana Scheme
Here we have listed out the benefits of the PMVVY scheme:
- The PMVVY scheme gives an assured benefit of the return of 8% per annum for 10 years. If we calculate the effective rate of interest, it turns out to be 8.3% per cent of the entire purchase price.
- The applicant can choose the intervals at which he would like to get his pension. The pensioner can choose to get the pension at monthly, quarterly, half-yearly, yearly basis.
- Earlier the purchase limit was set on per family basis. That is if the purchase limit was set on the entire family, not on per individual. But after the revision of rules by PM Modi, the limit has been set to per person. It is beneficial in the case where there are two senior citizens in one family.
- The scheme not covered under Service Tax/GST. Hence the policyholders do not have to pay taxes while purchasing the bonds of this scheme.
- If the pensioner survives for 10 years after the purchase of the policy, then after the end of the policy he can get his full purchase price along with the pension.
- The duration of the policy is 10 years.
- The pensioner can also avail of a loan on the purchased amount. However, the loan availed only on 75% of the purchase price of the policy. Also, the loan only availed after 3 years of purchase.
Pradhan Mantri VVY Loan Benefits
- If the pensioner dies during the policy duration of 10 years, the nominee named in the policy gets the full purchase price of the policy.
- The scheme allows withdrawing the purchase price amount under some circumstances. This can be done if the policyholder or his spouse is ill. In such conditions, the policy purchase amount can be withdrawn. However, only 98% of the total policy purchase price can be recovered.
- If you have brought the policy and you are not satisfied with your purchase, you can choose to surrender the policy and get your policy purchase price back. You can have the trial period and check if you are happy with the policy.
- A policyholder can surrender his policy within 15 days from the purchase. However, in the case of online policy purchases, the time limit for surrendering the policy is 30 days. Please note that the full policy amount will not be returned. The stamp charges will be deducted from the purchase price and the remaining amount will be given to the policyholder.
The Pradhan Mantri Vaya Vandana Yojana allows individuals to buy the scheme by either choosing their price purchase amount price or the amount of the pension that the subsequent policyholder will receive. Pensioners can choose any of the options and avail the scheme. Below is our table, we have discussed the minimum and maximum purchase price calculated in different modes depending upon the pension payment intervals you choose:
|Time Interval||Minimum Purchase Price||Maximum Purchase Price|
Method Of Payment Of Pension And Other Payment Rules
The pension payment made through either an Aadhar Enabled Payment System or NEFT. It was done on a monthly, quarterly, half-yearly, yearly intervals. Depending upon the pension payment interval you choose, you will get a pension. Below we have discussed the maximum or minimum pension you will get depending upon the pension payment interval you choose.
|Time Interval||Minimum Pension||Maximum Pension|
|Monthly||Rs 1,000||Rs 10,000|
|Quarterly||Rs 3,000||Rs 30,000|
|Half-yearly||Rs 6,000||Rs 60,000|
|Yearly||Rs 12,000||Rs 1,20,000|
Pradhan Mantri Vaya Vandana Yojana launched in 2017. The scheme provides a great opportunity for senior citizens to get an assured pension on a specific sum of money. With this scheme, the pensioners can get a minimum of Rs 1000 as their monthly pension. To get more other government schemes, check Timesalert.