Pradhan Mantri Vaya Vandana Yojana For Senior Citizens

Pradhan Mantri Vaya Vandana Yojana (PMVVY) For Senior Citizens is a pension as well as insurance scheme that is backed by the Central Government along with Life Insurance Corporation (LIC). This scheme is exclusively curated for all the individuals who are aged 60 years and above.

Objective of Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens to financially plan their retirement.

• Beneficiaries of age 60 and above can avail of this scheme.
• The duration of this policy is 10 years.
• PMVVY was available earlier from May 4, 2017, to March 31, 2020. But this is again extended till March 31, 2023.
• The minimum pension for a senior citizen is Rs.1,000, Rs.3,000, Rs.6,000, and Rs.12,000 for a month, quarterly, half-yearly, and yearly respectively.
• The maximum pension that a senior citizen can earn is Rs.10,000, Rs.30,000, Rs.60,000, and Rs.1,20,000 for a month, quarter, half-yearly, and yearly, respectively.
• The PMVVY scheme for senior citizens delivers an assured return of 7.4 percent per annum that can be expected for the entire span of 10 years.

Eligibility Factor

• The pensioner should be a Citizen of India.
• The applicant should be a senior citizen of age 60 and above.
• The pensioner should be ready to avail of the scheme for 10 years.
• There is no maximum age limit for the PMVVY scheme.

Top Benefits of Pradhan Mantri Vaya Vandana Yojana  Plan for People

1. Financial security with Assured returns

Senior citizens who avail of the PMVVY scheme are provided with financial security, allowing them to receive an amount at the end of a certain period for a term maximum of ten years.

Earlier a  return rate of 7.40 % each year was been offered initially in 2022-2023. But now with the Senior Citizens Saving Scheme (SCSS), the rate of interest is modified up to 7.75% with a new appraisal of the scheme.

2. Periodic benefits and payments

The PMVVY scheme provides periodic payout benefits for senior citizens based on their financial requirements monthly, quarterly, half-yearly, or annually. The initial payment should be done immediately after the purchase of the plan. This can be done based on the chosen mode of payment.

 3. Option to avail of loan facility

Pensioners can avail of the loan after 3 successful years of the policy. They can borrow at most 75% of the purchase amount as a  loan. Based on the chosen frequency of loan payment, interest is calculated and recovered.

4. Free Lock-in Period

If the pensioner is not comfortable with the terms and conditions in the contract, they can return the scheme within 30 days from the date of purchase in case of online policy.

When it comes to offline, the free Lock-in period is 15 days.

5. Benefit after demis

In case of a pensioner’s death, his/ her beneficiary is entitled to receive the claim of the entire purchase amount by submitting the necessary documents.

Senior citizens can avail of this PMVVY scheme to make the best of their post-retirement financial status, as the policy is safe and secure because it is formulated by the Central Government of India and LIC together.