Pradhan Mantri Vaya Vandana Yojana is a government backed Pension plan for Senior citizen announced by Government of India aims to provide regular pension to senior citizens. The scheme will avail guaranteed 8% return in monthly mode and 8.3% return in yearly mode. The PMVVY plan can be purchased from LIC up to 03-05-2018.
Here are some of the advantages and disadvantages of Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Under PMVVY the pensioner would receive the pension at the end of each time period. The time period can be monthly/quarterly/half-yearly and yearly. This will be chosen by the applicant during policy purchase.
Loan facility is available after completion of 3 policy years. Tloan amount would be maximum 75% of the invested amount. For the financial year 2016-17, the applicable interest rate to be charged is 10% p.a.
Pension in bank account
Like other pension schemes, you don't need to collect the pension amount. The pension would be transferred to the pensioner's bank account through NEFT or AEPS (Aadhar Enabled Payment System). Pradhan Mantri Vaya Vandana Yojana Launched: All You Need To Know
On survival of the PMVVY policyholder to the end of the policy term of 10 years, Purchase price along with final pension installment shall be returned. If the pensioner dies during the policy term of 10 years, the purchase price would be refunded to the nominee of the beneficiary.
The PMVVY scheme can be purchased upon payment of a fixed purchase price. Retirees can choose the frequency of pension payments from the monthly, quarterly, half-yearly and yearly options. The minimum and maximum purchase price under different pension methods will be as below:
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price|
|Yearly||Rs. 1,44,578/-||Rs. 14,76,015/-|
|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/-|
Method of payment of pension:
Pensions are paid monthly, quarterly, semi-annually and annually. The payment of the pension will be made via NEFT or Aadhaar Enabled Payment System.
The first tranche of pension is paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the method of payment of the pension, that is to say, annually, semi-annual, quarterly or monthly.
Minimum age and amount
Minimum age of entry in PMVVY is 60 years. In this scheme, there is no maximum age limit. There is a minimum and maximum amount which can be invested under the scheme. Minimum pension under the scheme is Rs. 1000 which maximum is Rs. 5000 per month.
Upon premature exit, 98% of the invested amount would be provided to the policy holder. This is applicable under exceptional circumstances like critical or terminal illness of self or spouse. How To Apply For Pradhan Mantri Vaya Vandana Yojana Online?