PMVVY is a government-backed Social Security and Pension Plan run by LIC. The investment limit has increased from Rs 7.5 lakh to Rs 15 lakh. The deadline for investing in PMVVY Scheme 2024 has extended from March 31, 2022 to March 31, 2023. In this article, we will share all the details about Pradhan Mantri Vaya Vandana Yojana, such as how to apply, eligibility, documents, and guidelines.
Pradhanmantri Vaya Vandana Yojana is a pension scheme for the elderly citizens of India, launched by the Government on 4 May 2017. Senior citizens who are 60 years or older can opt for a monthly or an annual pension under this scheme. They will receive 8% interest for 10 years if they choose the monthly option, or 8.3% interest for 10 years if they choose the annual option. | This scheme offers attractive returns to senior citizens on their savings.
Process To Apply Online On PMVVY
To apply online for PMVVY, you can follow these steps:
To apply for PMVVY online, you can follow these steps:
- Visit the official website of the Life Insurance Corporation of India (LIC) and click on the “Pradhan Mantri Vaya Vandana Yojana” option under the “Buy Policy Online” section.
- A new tab will open with four options: “Buy Online”, “Download Form”, “FAQs” and “Calculator”. Choose the option that suits your need.
- If you choose “Buy Online”, you will have to fill in your personal details, such as name, date of birth, Aadhaar number, PAN number, mobile number, email address, etc. You will also have to select the pension mode, pension amount and purchase price.
- After filling in the details, you will have to make the payment online through net banking, debit card or credit card. You will receive an acknowledgement receipt and a policy document on your email.
- If you choose “Download Form”, you will have to download the application form and fill it manually. You will also have to attach the required documents, such as proof of age, proof of address, proof of income, bank account passbook and passport size photo. You will have to submit the form and the documents at the nearest LIC branch along with the purchase price in cash or cheque. You will receive a policy document after verification.
What are the minimum and maximum limits of purchase price and pension amount under PMVVY?
The minimum and maximum limits of purchase price and pension amount under PMVVY are as follows:
| Mode of Pension | Minimum Purchase Price | Maximum Purchase Price | Minimum Pension | Maximum Pension |
|---|---|---|---|---|
| Yearly | Rs. 1,44,578 | Rs. 7,22,892 | Rs. 12,000 | Rs. 60,000 |
| Half-yearly | Rs. 1,47,601 | Rs. 7,38,007 | Rs. 6,000 | Rs. 30,000 |
| Quarterly | Rs. 1,49,068 | Rs. 7,45,342 | Rs. 3,000 | Rs. 15,000 |
| Monthly | Rs. 1,50,000 | Rs. 7,50,000 | Rs. 1,000 | Rs. 5,000 |
Required Documents for Applying
The required documents are:
- Aadhaar card
- PAN card
- Proof of age
- Proof of address
- Proof of income
- Bank account passbook
- Passport size photo of the applicant
Benefits Of PMVVY
- Pradhanmantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens (60+ years).
- They can invest up to Rs 15 lakh before March 31, 2023 and get monthly pension from Rs 1000 to Rs 9250.
- The pension is taxable as per the prevailing rates and laws.
- PMVVY is exempt from GST, unlike other general insurance products.
- No deduction is allowed under Section 80C for PMVVY investments.
How to receive pension payments under PMVVY?
The pension payments under PMVVY are made through NEFT or Aadhaar Enabled Payment System. The senior citizen has to provide his/her bank account details and Aadhaar number to LIC for this purpose. The first installment of pension is paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the scheme, depending on the mode of pension payment chosen by the senior citizen.
What are the risks and challenges ?
PMVVY is a safe and reliable scheme for senior citizens, but it also has some risks and challenges, such as:
- The interest rate of 7.4% per annum is fixed for 10 years and may not be sufficient to beat the inflation in the long run.
- The maximum pension amount of Rs. 5,000 per month may not be adequate to meet the living expenses of the senior citizen in the urban areas.
- The scheme is not linked to any market index or fund, which means the senior citizen cannot benefit from the growth or performance of the economy.
- The scheme is not transferable or assignable to any other person, which means the senior citizen cannot change the nominee or beneficiary in case of any change in the family situation.
