Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme exclusively for the senior citizens aged 60 years and above. The maximum Investment limit under this scheme is Rs 15 lakh per senior citizen.
The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.
Based on the success and popularity of Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes, and to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age, it is decided to launch a simplified scheme of assured pension of 8% called the ‘प्रधानमंत्रीवयवन्दनायोजना’.
 
The minimum and maximum Purchase Price under different modes of pension will be as under:
Mode of Pension Minimum Purchase Price Maximum Purchase Price
  • Yearly Rs. 1,44,578/- Rs. 14,45,783/-
  • Half-yearly Rs. 1,47,601/- Rs. 14,76,015/-
  • Quarterly Rs. 1,49,068/- Rs. 14,90,683/-
  • Monthly Rs. 1,50,000/- Rs. 15,00,000/-                                                                                                                                                              * The Purchase Price to be charged shall be rounded to nearest rupee.
    Mode of pension payment:
    • The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
    • The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.

Eligibility Criteria

  1. There are no specific eligibility criteria as such for PMVVY scheme except that the subscriber must be a senior citizen, i.e. (60 years and above).
  2. The applicant must be an Indian citizen.
  3. There is no maximum entry age for the PMVVY scheme.
  4. The applicant must be ready to avail of the policy term of ten years.

Benefits

  1. Maturity Benefit
    The entire principal amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed.
  2. Death Benefit
    On the death of the pensioner at any time during the term of 10 years, the purchase price will be refunded to the legal heirs/nominees.
  3. Loan Benefit
    A loan of up to 75% of the purchase price can be availed after three years to cover emergencies. However, a rate of interest will be charged for the loan amount as determined at periodic intervals by the government and the loan interest will be recovered from the pension amount payable under the policy.
  4. Surrender Value
    The scheme allows premature exit during the term of the policy under exceptional circumstances such as when the pensioner requires money for the treatment of any critical/terminal illness of self or spouse. The surrender value of 98% of the purchase price will be payable to the pensioner in such cases.
     

How to Apply

  1. Aadhaar Card
  2. Bank Account Details
  3. Aadhaar card
  4. PAN card
  5. Proof of age
  6. Proof of address
  7. Proof of income
  8. Documents indicating that the applicant has retired from employment

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