Pradhan Mantri Vaya Vandana Yojana(PMVVY) – Eligibility, BenefitsOnline Application Form / Interest Rate / Pension Details PDF Download
PMVVY (Pradhan Mantri Vaya Vandana Yojana) is a retirement cum pension scheme for senior citizens.
The scheme is operated and managed by Life Insurance Corporation (LIC).
Backed by the Indian government, this pension plan is provided by Life Insurance Corporation (LIC) which caters to one’s need for post-retirement financial planning.
The Prime Minister Vay Vandana Yojana was launched on 4 May 2017 by the Government of India for senior citizens of the country.
This is a pension scheme.
Under this scheme, senior citizens of 60 years or more opt for monthly pension, they will get 8% interest for 10 years.
If they choose the annual pension option, they will get 8.3% interest for 10 years.
Senior citizens will get a good interest on their investment under Pradhan Mantri Vay Vandana Yojana.
We have covered the following in this article:
Eligibility Criteria for the PM Vaya Vandana Yojana
Individuals can purchase Pradhan Mantri Vaya Vandana Yojana only after meeting the eligibility criteria determined by the government.
Here is a list of criteria one needs to fulfil elucidated in a tabular format.
|Entry age in years||60||No limit|
|Policy term in years||10|
- There are no specific eligibility criteria as such for the PMVVY scheme except that the subscriber must be a senior citizen (above the age of 60 years).
- The applicant must be an Indian citizen.
- There is no maximum entry age for the PMVVY scheme.
- Also, the applicant must be ready to avail of the policy term of 10 years.
|Minimum Pension||Maximum Pension|
|Rs.1,000 per month||Rs.10,000 per month|
|Rs.3,000 per quarter||Rs.30,000 per quarter|
|Rs.6,000 per half-year||Rs.60,000 per half-year|
|Rs.12,000 per year||Rs.1,20,000 per year|
Features Of PM Vaya Vandana Yojana
- Retirement financial security via pension payment
Under Pradhan Mantri Vaya Vandana Yojana, individuals who have availed this pension plan are allowed to receive a fixed amount at the end of a certain period chosen by an individual for a maximum term of 10 years.
- Assurance of returns
PM Vaya Vandana Yojana will initially provide an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
Annual reset of the assured rate of interest with effect from April 1st of the financial year in line with the revised rate of returns of Senior Citizens Saving Scheme (SCSS) up to a ceiling of 7.75% with a fresh appraisal of the scheme on breach of this threshold at any point.
- Periodic payout options
Individuals can opt for monthly, quarterly, half-yearly, or annual payout with the plan as per their financial requirements and convenience.
The first payment must be performed immediately after the plan purchase, depending on one’s chosen payment mode.
For example, if a pensioner has chosen a quarterly mode of payment, he/she should receive the first payment within 3 months from the date of policy purchase.
|Medical||No medical examination is required.|
|Surrender Value||Premature exit is allowed during policy term under exceptional circumstances like Critical/Terminal illness of self or spouse. Surrender Value payable in such cases is 98% of the Purchase Price.|
|Loan||Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75% of the purchase price.|
|Suicide||There is no exclusion in case of suicide. In such a case, the full purchase price will be payable to the nominee / legal heir.|
Pradhan Mantri Vaya Vandana Yojana Scheme Benefits
Mentioned below are the benefits of the PMVVY scheme:
- Under the scheme, the pensioner will receive an assured return of 8% p.a. for the policy duration of 10 years.
- Pension Payment: In case the pensioner survives the duration of the policy, the pension will be paid in arrears. The pensioner can also choose the mode by which the pension must be made.
- Death benefit: The purchase price will be paid back to the beneficiary if the pensioner passes away during the policy tenure.
- Maturity benefit: If the pensioner survives the entire policy tenure, the purchase price will be paid along with the final pension instalment.
- Loan facility: After completing 3 years of the policy, the pensioner can avail loans against the policy. A maximum of 75% of the purchase price can be availed as a loan. The interest on the loan will be recovered from the pension payment that is being made. In case any loan has been sanctioned up to 30 April 2018, the rate of interest is 10% p.a. and it is payable half-yearly throughout the entire policy term.
- Free-look period: The policyholder can surrender the policy within 15 days if he/she is not happy with the terms of the policy. However, the free-look period is 30 days if the policy is bought online. The purchase price after the deduction of stamp charges will be refunded to the policyholder.
Frauds under the Pradhan Mantri Vaya Vandana Yojana scheme
LIC can inform the insured in case of any fraud related to the policy within 3 years from:
- The date from when the policy was issued.
- The date from when the risks commenced.
- The date from when the policy was revived.
- The date from when the rider was added to the policy, whichever is later.
The insurer must also provide the insured or his/her legal representative, or nominees with the details on why such an action was taken, and these details must be given in writing. Fraud under such circumstances means an act that is committed by the insured or his/her agent with an aim to deceive the insurer.
Vayana Vandana Scheme Payment
You can pay the Pradhan Mantri Vaya Vandana Yojana monthly, quarterly, half-yearly, or annually.
You have to make this payment either through NEFT or through Aadhaar Enabled Payment System.
- yearly There is an option to take it on an annual basis, you can choose any option as per your wish.
- The pension will be paid by NEFT or through the Aadhaar enabled payment system.
Maximum purchase price under different modes of pension
|Mode of pension||Maximum purchase price||Corresponding pension amount|
|Yearly||14,49,086||1,11,000 per annum|
|Half-yearly||14,76,064||55,500 per half-year|
|Quarterly||14,89,933||27,750 per Qtr.|
|Monthly||15,00,000||9,250 per month|
Minimum purchase price under different modes of pension
|Mode of pension||Minimum purchase price||Corresponding pension amount|
|Yearly||1,56,658||12,000 per annum|
|Quarterly||1,61,074||3,000 per Qtr.|
|Monthly||1,62,162||1,000 per month|
Pradhan Mantri Vay Vandana Yojana Surrender Value
- If a person is not able to pay under the Pradhan Mantri Vaya Vandana Yojana Or money is needed for some reason and he wants to leave this plan.
- In this case, 98% of the amount paid will be returned.
- Also if you are not satisfied with the terms and conditions of this policy.
- In this case, if you have purchased the policy offline within 15 days and if you have purchased the policy online within 30 days, you can return it.
- The full amount paid by you will be provided to you upon return.
Some important things of PM Vyandana Yojana
- Through the Pradhan Mantri Vaya Vandana Yojana, senior citizens of the country are provided pension after the age of 60 years.
- The beneficiary has to pay the premium amount to get this pension.
- The policy term under this scheme is 10 years.
- The premium amount will be paid on the basis of the mode of pension under Pradhan Mantri Vay Vandana Yojana.
- The pensioner can make monthly, quarterly, half-yearly, and annual payments under this scheme.
- If the beneficiary dies, the purchase price of the pension is paid to the legal heir.
- Pradhan Mantri Vaya Vandana Yojana can be purchased without any medical examination and permission to exit prematurely under this scheme is granted under certain special circumstances.
- If the beneficiary exits the scheme before time, then he is provided 9% of the purchase price.
- The beneficiary can also get a loan after 3 years of purchasing this plan.
- 75% of the loan purchase price can be obtained under Pradhan Mantri Vay Vandana Yojana.
Important documents of PM Vyandana Yojana
- Aadhar card
- Pan Card
- Proof of age
- proof of income
- Proof of residence
- Bank account
- mobile number
- Passport size photo
PM Vaya Vandana Yojana (PMVVY) Interest Rates
|Mode of Pension||Effective Interest Rate per annum|
How to apply for PM Vayana Vandana Yojana 2021?
Individuals can buy Pradhan Mantri Vaya Vandana Yojana both offline and online from Life Insurance Corporation of India.
To purchase this scheme through the offline mode, individuals need to approach the nearest or preferred branch of LIC.
After deciding the preferred purchase price or pension payment, individuals need to fill up the application form and submit it along with required documents and the chosen amount.
For a hassle-free application process, individuals can apply for Pradhan Mantri Vaya Vandana Yojana online through the following steps.
First of all, the applicant has to visit the official website of LIC.
After visiting the official website, the home page will open in front of you.
Now Click the “Buy Now” button under the LIC Plan 856 (Pradhan Mantri Vaya Vandana Yojana) as given in the below Photo.
On the next page click the “Click to Buy Online” button to open the LIC PMVVY online application form like this photo
Fill in all the required details in the form and click the “Calculate Premium” button. Now, you will receive the OTP on your mobile number, enter the OTP on the OTP screen and click the “Proceed” button.
After entering the OTP, you will be asked if you already have a PM Vaya Vandana Yojana policy, select “No” and then click the “Next” button.
On the next page, you will see the complete application form for the LIC PMVVY Plan, where you have to select the “Purchase Option“, “Pension Mode“, “Amount” and “Payment Mode“. After filling in all the details as per your choice, click the “Calculate Premium” button.
In the next step, you will be shown the details of the premium and then you can go ahead with the Aadhaar Validation and online payment of the premium.
After successful payment, you will be issued the policy and a policy number will be provided.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) Pension Calculator
Use this Calculator to calculate the annuity you will receive in Pradhan Mantri Vaya Vandana Yojana.
Go to this link
Click On This PDF