Pradhan Mantri Vaya Vandana yojana

Pradhan Mantri Vaya Vandana Yojana, Interest Rate, Benefits, Purchase Price

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Modi government-sponsored pension scheme meant exclusively for senior citizens aged 60 and above. The scheme, which was first made available in 2017, is now valid up to 2023. With the scheme, the government aims to provide financial security to senior citizens and help them meet their old age expenses. To avail of the scheme, senior citizens can approach any licensed life insurance company or public sector bank.

PMVVY Scheme Benefits

प्रधानमंत्री वय वंदना योजना

In 2020-21 and thereafter, PMVVY assures 7.40% returns. As part of the scheme, policies purchased by 31st March 2022 will also receive an agreed pension of 7.40% p.a payable monthly. The scheme is designed to provide social security in old age and is, therefore, an important scheme for senior citizens.

Pension payments are made at the end of each covered period, during which you have been covered by your policy. This means that if it’s monthly payments then they’ll come every month. You can also choose between quarterly or half-yearly coverage – this way there are fewer gaps in between paychecks without any risk involved.

The government has exempted this plan from GST, so you don’t have to worry about any tax burden on your retirement savings.

Pradhan Mantri Vaya Vandana Yojana

Name of the Scheme Pradhan Mantri Vaya Vandana Yojana
Launched By Central Government Of India
Beneficiary Provide social security in old age
Objective Pension Scheme for Senior Citizen
Official Website https://financialservices.gov.in
Year 2014

More to Know About the Scheme

The bank loans up to 75% of the purchase price, with an option for a three-year mortgage. The interest on these mortgages can come from either pension payments or claim proceeds; they are recoverable at any time after one year’s repayments have been made without penalty.

The plan also provides for early retirement from work to take care of a critically ill family member or self. On these premature withdrawals, 98% is refunded back into your account. The insurance policy term is 10 years and on the death of a pensioner during this time, the spouse will be compensated. The purchase price can also accommodate any other eligible family members as well so long as they are present within your household!

Eligibility

Min Entry Age Sixty Years
Max. Entry Age No Age Limit
Policy Time Ten Years
Investment Limit Rs 15 lakh per senior citizen
Minimum Pension

Rs. 1k/- per month

Rs. 3k/- per quarter

Rs. 6k/- per half-year

Rs.12k/- per year

Maximum Pension

Rs. 9.25k/- per month

Rs. 27.75k/- per quarter

Rs. 55.5k/- per half-year

Rs. 1 Lac 11k/- per year

Payment of Purchase Price

The purchase price can be paid in a single payment or over time. You have the option of choosing how much money you want for your pension as well, with options ranging from:

Pension Mode Min. Purchase Price Max. Purchase Price
Yearly Rs. 1,56,658/- Rs. 1,449,086/
monthly Rs. 1,62,162/- Rs. 15,00,000/-

Free Look Period

Free Look period is a fancy way of saying you can cancel your policy with no strings attached. If the customer doesn’t like what they see in terms & conditions, all he or she needs to do is return within 15 working days (a month in a case bought online) after receiving their enrollment notice for a full refund including the tax on initial deposit-stamp duty paid already spent as well any PPS payment made towards retirement plans at work

Final Say

The Pradhan Mantri Vaya Vandana Yojana is a great scheme that offers elderly citizens a monthly income during their retirement years. It’s important to note, however, that there are some eligibility requirements that must be met to qualify for the program. If you’re an elderly citizen and would like more information on the Pradhan Mantri Vaya Vandana Yojana, please visit the official website or speak to your local bank representative. 

Official Website Click Here
Official Home Click Here

FAQ’s

Is PM Vaya Vandana Yojana still available?

Yes, The PMVVY scheme is valid and available For Financial Year 2022-23 up to 31st March, 2023, with an assured pension of 7.40% p.a. payable monthly.

What is pradhan mantri vaya vandana yojana age limit?

The pension scheme is for senior citizens with a minimum age of 60 years

What is pradhan Mantri vaya vandana yojana minimum amount?

The minimum investment amount for pradhan mantri vaya vandana yojana is Rs. 1.50 lakh.

What is pradhan mantri vaya vandana yojana death benefit?

In case of the death of the policyholder during the 10-year policy term, the Purchase Price shall be refunded to the beneficiary. If the policyholder is alive till the end of the policy term, the Purchase price along with the final pension installment shall be returned.

Is pradhan mantri vaya vandana yojana eligible for 80C deduction?

A senior citizen who is purchasing PMVVY is eligible to claim a deduction of INR 1,50,000 on the deposit amount under section 80C.

Is pradhan mantri vaya vandana yojana Taxable?

Yes, as per the respective tax slabs returns on the scheme is taxable. Hence, the Pmvvy pension scheme is a plan with the highest interest rate of 7.40% P.A.

Is a life certificate required for Pmvvy?

Yes, on yearly basis through online mode.

What is Mode of pension payment in pradhan mantri vaya vandana yojana (Pmvvy)?

Through NEFT or Aadhaar Enabled Payment System.

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Harsh Kumar
Articles: 43

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