Know all about Pradhan Mantri Vaya Vandana Yojana (PMVVY): Eligibility, Features, Benefits & More
The Government of India today offers different types of schemes for senior citizens to lead a secured life. On the other hand, it is necessary to know more about them in detail that will help make the right decision. The Pradhan Mantri Vaya Vandana Yojana is a pension social security scheme that provides several advantages. It is ideal for those who want to plan their life after retirement. The scheme is now managed by the Life Insurance Corporation of India (LIC), which caters to the needs of senior citizens. It allows investors to earn a regular income after retirement.
What is Pradhan Mantri Vaya Vandana Yojana?
It is wise to know more about the details of the PMVVY from different sources. The scheme is a non-linked and non-participating pension plan launched in 2017 and extended up to 31 March 2023. Anyone who wants to ensure an assured rate of return on investment can pick this plan. The scheme pays out a regular pension and serves as the best alternative to bank fixed deposits. Not only that, it provides high-interest rates on investments to get more returns.
What are the features of PMVVY?
- The plan allows investors to ensure high returns after retirement
- Policyholders can exit from the policy during the policy term of 10 years
- The scheme comes with a free lock-in period which provides a higher liquidity
- Investors will get a minimum of pension Rs.1000 and a maximum pension of Rs.9250 per month
- A policyholder can withdraw 98% of the purchase price in case of a medical emergency
- If a subscriber dies during 10 years policy term, then a nominee or beneficiary will receive the purchase price
- The scheme will pay the pension at the end of each period as per the payment mode chosen by an investor
- A subscriber can avail of loans up to 75% of the purchase price and final pension installment after 3 years
- The plan doesn’t include any VAT or service charges that will help save money
- It allows subscribers to receive the purchase price benefit at the end of 10 years
- The total purchase of the plan shouldn’t exceed Rs.15 lakhs
Who is eligible for PMVVY?
Anyone above 60 years old can apply for the PMVVY scheme, and there is no restriction on the maximum age limit. However, it is available only for the citizens of India and not for NRI citizens. The minimum purchase price is Rs.1.5 lakhs which offers a monthly pension of Rs.1000.
What are the documents required for the PMVVY?
Those who want to apply for the PM Vaya Vandana Yojana should submit the following documents.
- Age proof
- Address proof such as Aadhaar card, passport, etc
- 2 passport sizes of the photographs
- Proof of retirement from employment
How to calculate the pension amount of the PMVVY scheme?
Senior citizens can use the PM Vaya Vandana Yojana calculator online that will help determine the pension amount. They should choose the pension modes such as monthly, quarterly, half-yearly, and yearly while calculating the amount.
What is the interest rate of the PMVVY scheme?
Investors should know the PMVVY interest rate because the Indian Government will make changes based on the market conditions and other things. The rate of interest for the scheme varies from 8% to 8.3% allowing senior citizens to generate high returns. Therefore, it is wise to check the same before applying for the plan.
How to apply for the PMVVY scheme?
Senior citizens can apply for the PMVVY online and offline, which will help a lot to meet essential needs. At the same time, they should follow some instructions while applying for the scheme.
- Online procedure
- The first step is customers should visit the official website of the LIC
- In the second step, they should select “Pension plans” under products to proceed further
- Investors should fill the relevant application form
- The final step is submitting the online application after uploading the documents
- Offline procedure
- An investor should visit the nearest LIC branch in their location
- He/she should collect the Pradhan Mantri Vaya Vandana Yojana form from the branch
- The next step is submitting the form along with the documents
How to pay the amounts for the PMVVY scheme?
Investors should know how to pay amounts for the PMVVY pension plan, which will help make the right decision. They can choose their options which exactly fit their income and other things. The pension that an investor receives will depend on their purchase prices that generate high returns. A subscriber can select a payment mode after knowing the complete details. To invest in this scheme, investors should have a considerable amount in hand.
How to get a loan against PMVVY?
A subscriber can get a loan against PMVVY during the policy term, and the interest will be adjusted from the pension amount to be paid by him/her. Moreover, the scheme will recover the outstanding amount from the claim proceeds. It is usually done after a person exits the scheme. At the same time, it is important to know more about the terms and conditions while availing of a loan.
Is PMVVY the right option for retirees?
PMVVY is the right option for people who retire from their work after 60 years. It provides maximum returns for the investors, thereby showing ways to ensure financial stability in life after retirement. Another thing is that it provides methods to focus more on financial planning to lead a trouble-free life. It is wise to know Pradhan Mantri Vaya Vandana Yojana tax benefits before investing money in the plan. This, in turn, gives ways to make payments based on the choices. A subscriber can exit within 30 days in case of online purchase and 15 days when it comes to offline purchase. One should gather more information about the scheme online or other sources before selecting it. The scheme aims at catering to the needs of investors with excellent features.