Pradhan Mantri Vaya Vandana Yojana offer you 7.40 rate of interest for year 2021-22 where as bank fixed deposits will offer you only around 5% of interest. Under Pradhan Mantri Vaya Vandana Yojana one will get guaranteed pension of Maximum 10000rs per month. PMVVY Scheme is backed by government of India, which assures guaranteed return on the amount parked, which makes it risk free investment. Monthly pension under PMVVY scheme depends on the rate of interest offered by the scheme. Let us discuss PMVVY scheme details one by one
Pradhan mantri vaya vandana yojana | PMVVY scheme details.
Pradhan Mantri Vaya Vandana Yojana is a subsidized pension scheme of government of India and Life insurance corporation (LIC) will be the administrator of this scheme for GOI means if you want to enroll under PMVVY scheme you have to visit LIC office.
Important features of Pradhan mantri Vaya Vandana Yojana LIC | PMVVY scheme details.
- Government of India scheme administrated by Life insurance corporation (LIC).
- Only for senior citizens of above age 60 years and there is no upper age limit for enrollment under Pradhan mantri Vaya Vandana Yojana LIC.
- Scheme is available up to 31st march 2023.
- Rate of interest for this scheme is decided by government of India annually.
- Rate of interest at the time of entry/contact to the scheme will remain same for the rest of the term
- Term of Pradhan mantri Vaya Vandana Yojana LIC is 10 years. You can withdraw invested amount Before completion of 10 years with 2% penalty on invested amount.
- Pension can be availed in monthly, Quarterly, Half-yearly or Annually.
- After completion of 10 years beneficiary will be refunded back with full invested amount.
- If beneficiary died before completion of10 years, the amount invested will be refunded to the nominee of the beneficiary.
- You can also avail loan up to 75% of invested amount.
Eligibility for Pradhan mantri Vaya Vandana Yojana LIC
Pradhan mantri vaya vandana yojana is specially designed for senior citizens of India hence Person of age 60 years and above are eligible for investment under this pension scheme. Their are no other eligibilities criteria’s which are required to become member of PMVVY scheme.
PMVVY scheme details and benefits.
There are some advantages and some disadvantages of Pradhan mantri Vaya Vandana Yojana lets see them one by one and under stand its pros & cons.
Benefits of PMVVY scheme
- Investment is Risk free and is backed by government of India.
- Interest rate offered under this scheme is always more than bank Fixed deposit rate.
- If subscriber of PMVVY scheme expires within policy term of ten years then the nominee/beneficiary will be refunded with 100% purchase price of policy( no penalty shall levy on purchase price)
- In case subscriber have some urgent need of funds he/she can withdraw and exit from this scheme at any time but he/she will get 98% of purchase price( exit before 10 years is allowed only if funds are required for medical expense of self or spouse)
- You can also avail loan on the purchase price of Pradhan mantri Vaya Vandana Yojana LIC. Loan entitlement is Up to 75 percent of purchase price of policy and that too after completion of 3 years.
- One of the most important feature of this scheme is that you can return policy within 15 days if you are not satisfied with your purchase and in this case you will be refunded with 100% of your purchase price( only deduction is of stamp duty charges)
Disadvantages of Pradhan mantri Vaya Vandana Yojana LIC
PMVVY scheme have no such disadvantages but is will be less beneficial than other senior citizen scheme in some points. Lets discuss these point
- There are no tax benefits under PMVVY scheme but under other senior citizen schemes their are some tax benefits under 80c.
- PMVVY is for 10 years and premature exit may invite penalties.
- premature exit penalty is higher in Pradhan mantri Vaya Vandana Yojana LIC i.e. 2%
Pradhan mantri Vaya Vandana Yojana LIC pension policy investment
In PMVVY pension scheme minimum monthly pension is one thousand rupees and maximum pension amount is rupees ten thousand rupees. You cannot invest more than fifteen lakh rupees under this scheme.
chart for pension amount for minimum investment
|Mode of payment||Minimum pension(in rupees)||Minimum investment(in rupees)|
for maximum investment.
|Mode of payment||Maximum pension(in rupees)||maximum investment(in rupees)|
Other pension scheme which you may find interesting:
Pension scheme for unorganized sector
Pension scheme for small and marginal farmers
Pradhan mantri awas yojana gramin
Official website for pradhan mantri vaya vandana yojana LIC
Frequently asked Questions on Pradhan mantri vaya vandana yojana | PMVVY scheme details
What is PMVVY Interest rate 2021?
PMVVY interest rates for year 2021-22 is 7.40%. Rate of interest for Pradhan mantri Vaya Vandana Yojana is decided by government of India annually in the month of April every year and Rate of interest at the time of entry to the scheme will remain same for the rest of the term of scheme.
What is PMVVY scheme?
Pradhan Mantri Vaya Vandana Yojana is a subsidized pension scheme of India government which is administrated by Life insurance corporation (LIC). This pension scheme is only for senior citizens of age above 60 years. On one time investment under this scheme you will get monthly, quarterly, half-yearly or yearly pension and at the end of the term you will get refund of your invested amount.
PMVVY Full form?
PMVVY is a senior citizen pension scheme of government of India administrated through LIC. PMVVY stand for Pradhan mantri Vaya Vandana Yojana.
PMVVY scheme details?
Senior citizen pension scheme under this scheme on one time investment you will get monthly, quarterly, half-yearly or yearly pension and at the end of the term you will get refund of your invested amount. Minimum pension amount is 1000 per month and maximum amount is rupees 10000 (approx). Policy term is of 10years and pre mature exit is also available under this scheme.
How much amount can be withdrawn under Pre mature exit?
Pre mature exit from pradhan mantri vaya vandana yojana LIC is only entertaine if there are medical emergency expenses of self or spouse.
On pre mature exit you will get refund of 98% of your invested amount and 2% will be charged as penalty for pre mature exit.