Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme which provides the country’s senior citizens with sustainable income avenues. Backed by the Indian government, this pension plan is managed and operated by the Life Insurance Corporation (LIC) & is aimed to give regular pension to senior citizens.
The scheme was launched officially on 21st July 2017 by Finance Minister of India Arun Jaitley, although it has been available for purchase since its soft launch on 4th May 2017.
The scheme is now extended up to 31st March, 2023 for a further period of three years beyond 31st March, 2020.
This scheme is an excellent alternative to traditional bank deposits & pays out regular pension either monthly, quarterly or yearly.
ELIGIBILITY FOR PMVVY
The eligibility criteria to apply for this scheme is listed as:-
- The applicant must be an Indian citizen.
- Minimum age of applicant must be 60 years (completed), no limit on maximum entry age
- Tenure of the policy 10 years
- Investment limit up to Rs 15 lakh per senior citizen
- Minimum pension amount: Rs 1,000/- per month, Rs 3,000/- per quarter, Rs 6,000/- per half-year and Rs 12,000/- per year.
- Maximum pension amount: Rs 12,000/- per month, Rs 30,000/- per quarter, Rs 60,000/- per half-year and Rs 1,20,000/- per year
The following documents are required to subscribe under this scheme-
- Aadhaar card
- PAN Card
- Driving License
- Bank passbook
- Proof of address
- Recent passport size photographs
- Proof of retirement
BENEFITS OF PMVVY
The various advantages of Vaya Vandana Yojana are listed as below :
- Individuals who have chosen this pension scheme are entitled to earn a fixed amount for a fixed term of 10 years at the end of a certain span selected by an individual.
- The PMVVY scheme provides subscribers with an assured return at the rate of 8% to 8.3% for 10 years
- Loan of up to 75% of the purchase price can be availed after three years to cover emergencies
- In the event of a pensioner’s death during the policy term, his/her beneficiary is entitled to receive an entire purchase amount as a claim on submitting required documents.
- The scheme allows to withdraw from scheme during the policy term under exceptional circumstance where the surrender value paid back will be 98% of purchase price.
- There are no exclusions under this scheme .Even on suicide, the scheme will pay back the full purchase price.
Thus, in simple words the Vaya Vandana Yojana is an initiative taken by the Indian Government to provide guaranteed 10 year pension payout to senior citizens aged 60 years or above at a specified rate