Pradhan Mantri Vaya Vandana (PMVVY) is an exclusive scheme of the government which is launched for senior citizens aged above 60 years in our country. This scheme was launched for only a certain period of time. But now, this scheme is extended for a certain period of time. This scheme is launched in 2017 and then in 2020 period, this scheme is extended for a period of three years by the government.
The PMVVY Scheme launch date is 4th march 2017. The Pradhan Mantri Vaya Vandana Scheme (PMVVY) is administered by the LIC. Yes, this scheme falls under the ministry of finance, but this scheme is officially regulated by the Lic and all the scheme-related functionality is performed by it.
| Name of Scheme | Pradhan Mantri Vaya Vandana |
| Scheme Benefits | You will get stable returns on your investment |
| Objective | To promote investment among the people of the country |
Table of Contents
- Aim of PMVVY Scheme:
- Eligibility Criteria or restrictions of the PMVVY Scheme:
- Benefits of Pradhan Mantri Vaya Vandana scheme:
- How to Apply for PMVVY policy or Application processing:
- FAQ On Pmvvy
Aim of PMVVY Scheme:
The aim of this PMVVY Scheme is to provide future security to elderly persons. They launched the PMVVY scheme because those elderly people are not investing their money anywhere due to the fear of the future fall in the interest earned on the income due to the uncertain market condition. Through, this scheme the government provides assurance to all elderly people that whatever amount they have submitted or invested under this scheme they will get all the interest on it too, remaining whatever will be the market condition either good or bad.
Beneficiaries of the PMVVY Scheme:
People who are of 60 years of age or above 60 years of age all will get the benefit under this scheme. Pradhan Mantri Vaya Vandana Scheme (PMVVY) provides assurance to the senior citizen people of this country. There is an age limit under this scheme. All the people who want to become part of the scheme will be 60 years of age or Above 60 years of age. No one below 60 years of age is allowed under the PMVVY
Eligibility Criteria or restrictions of the PMVVY Scheme:
There are certain eligibility criteria made under this scheme. So, everyone can not take part in the scheme. Only specific or needy people can apply for the scheme.
- The Maximum age limit of the scheme is not set, all people who are above the age of 60 years can take part in the scheme. The minimum age requires by anyone o become the scheme part is 60 years.
- The term period of this policy is 10 years.
- The investment limit is also made under the scheme. The amount of Rs.15 lakh is made under the scheme.
- The minimum Pension will be given under are given below:
- Rs. 1000/- per month on an Interest rate of 7.40%.
- Rs3000/- in 3 months on an Interest rate of 7.45%.
- Rs.6000/- in 6 months on an Interest rate of 7.52%.
- Rs.12000/- Per Year. inv on an Interest rate of 7.66%.
- The maximum pension earned in this scheme is:
- Rs. 9,250/- Per month on an Interest rate of 7.40%.
- Rs. 27,750/- Per quarter/-on an Interest rate of 7.45%.
- Rs. 55,500/- in half of the year on an Interest rate of 7.52%.
- Rs. 1,11,000/- in a year on an Interest rate of 7.66%.
Benefits of Pradhan Mantri Vaya Vandana scheme:
There are some major benefits of this scheme people who are planning to enrol themselves in the scheme can do the following points:
- This scheme is exempted from the Gst tax. So, you do not need to pay, or no tax will be deducted under this scheme. But taxes are involved in this only service and GSTare is not implemented, but tax is not removed by the government.
- If the pensioner survives after the 10 years terms of this policy then he will get his purchase price with the last pension benefit on it. The purchase price is the money that you have submitted under this policy.
- If the pensioner dies in between this policy period then all the money which is invested in the policy will be given to the spouse or the nominee. The nominee or spouse can’t continue this scheme like the facility given in other schemes.
- A loan facility is also available in the scheme. You can also take a loan under this scheme, The maximum loan you can take from it is about 75% of the purchase price. This loan is given an interest rate of 9.5%. You do not need to repay this amount to the bank this is adjusted by the bank from your pension which is given to you under this PMVVY scheme.
- The guaranteed pension rate under the scheme is the same for online as well as for offline mode. There is no change in the rate for people who are applying from different modes like offline or online.
- Under this Pmvvy scheme, you will get an interest rate of 7.40% on the monthly basis. The interest on the changes but if you have enrolled yourself at a certain interest rate at the start of the scheme then you will get that interest rate on your monthly pension. like if you enrolled yourself at the 8% interest rate under this which is given to those who enrolled themselves at the start of the scheme, then along ten periods of the term you will get only of 8% interest rate. Because the policy at the start says that they will provide you with the same interest rate whatever will be the market conditions.
- The Scheme also provides you with the option of Premature exit from this scheme but you exit only on certain conditions. Like if you or your spouse is suffering from some critical illness then you can take this amount back but only 98% of the total purchase price will be given to you only 2% will be deducted from your amount as a penalty.
If you want to enrol yourself in this then enrol yourself in the scheme as soon as possible because the PMVVY scheme is expiring soon on 31st March 2023. This means that people who want to register themselves into the scheme can’t get a chance to register themselves into the scheme after 31st March 2023. So, start enrolling fast before it’s too late for you.
Mode of pension In PMVVY Scheme:
The Payment or pension is given on a monthly, quarterly, half-yearly, and yearly basis. The payment system which is present in this scheme is an Nft or Adhaar-enabled payment system. The pensioner gets his first pension payment after a certain period of time like 6 months, 3 months 1 month, or after 1 year from the date of his policy purchase. This pension mode depends on a yearly, half-yearly, quarterly, or on monthly basis.
Free look period on Pmvvy scheme
Every person first looks at all the benefits of the policy but sometimes missed or forgets to read or do not understand the policy term and conditions in the hurry to purchase the policy because they sometimes very much looks only at the benefit of the policy. So, many times they choose the wrong policy for them.
But in this Pradhan Mantri Vandana Yojana (Pmvvy), they have provided an option of free to look policy under which anyone can return the policy to the company within 15 days of working. This 15 days policy return option is for offline policy-enrolled persons. If you purchase the policy through online mode then you can return the policy within 30 days. The company will return and refund your full purchase price but only deduct the same price of the charges or pension if they have paid it to you.
How to Apply for PMVVY policy or Application processing:
If you want to purchase the policy then you have to follow some processes. You can purchase the policy in two ways online mode or offline from the LIC office.
Offline mode Scheme Purchase Process:
If you want to purchase the scheme then you have to visit your nearest LIC branch. Then, you have to decide which Purchase price plan you want to choose. After this, you have to fill up a new application form with all the related details that this form demands of you and submit this along with the required documents.
Online Application Process:
If there is no Lic Branch near you then you have the option of applying through online mode. Some steps are given in the below points through which you can apply on an online basis easily:
- First Visit the Official website of the Life Insurance Corporation Of India.
- Now below or under the “Buy option” which is mentioned in the header. Click on the “Pradhan Mantri Vaya Vandana Option.
- A new tab will open with four different options mentioned on it. Then click on button no. 842 for the ” buy policy” option. Then a new page will appear, on which you have to select the buy online option on the left side corner of the page.
- The next step is to create an access id for proceeding further on. Now you have to give details like your name, email id, mobile no. date of birth, like this. Then after providing all the detail you will get a 9-digit access id either by SMS at the registered mobile or by email.
- The next, step is to submit your access id then you have to push the proceed button to go on with the application form.
- At end of this process you select a plan in this PMVVY, now fill up the application with the required details, now upload some scanned copies of your documents. After this, you have made a payment whichever you have selected. Now after the submission of the form, the company will give you an acknowledgement and policy number.
These are all the process steps for applying for or purchasing the policy from the LIC(Life Insurance Corporation).
Documents needed in the Application Process:
If an individual wants to apply for the pension scheme, then he has to be ready with some essential documents.
- Aadhaar Card
- PAN Card
- Passbook of the bank where the pensioner acknowledgement.
A person purchasing the pension scheme had to be careful about the scheme’s Date of receipt, date of risk commencement, date when the policy was revived if any, and also the date of adding riders.
Disclaimer :
In the above article, we have provided every information related to the scheme of the Pradhan Mantri Vaya Vandana Yojana. This scheme is for senior citizens above the age of 60 years. If you have read our article and you have a query regarding the scheme then you can ask us by posting your comment in the comment section. We try to answer you as soon as possible. You can also visit the official site where you can find details regarding this scheme.
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FAQ On Pmvvy
What is the investment limit in Pmvvy?
The investment limit in this Pmvvy yojana is about 15 lakh. The maximum amount which one can invest into this scheme. This scheme is administered by the LIC.
