Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched for senior citizens of India. PMVVY Scheme offers a guaranteed pension payout at a specific rate of interest. The policy which was earlier open for a short time period is now extended till 31st March 2020.
The PMVVY scheme is for citizen above 60 years of age giving a guaranteed return of 8% for 10 years to the senior citizens. The scheme is exempted from the Goods and Services Tax (GST).
Eligibility for PMVVY Scheme
The minimum age of entry for the scheme is 60 years. There is no maximum age limit. The duration of the policy is 10 years. The maximum investment allowed per person is Rs. 15 lakhs.
How to apply for LIC PMVVY Scheme
To apply for LIC Pradhan Mantri Vaya Vandana Yojana, a candidate need to fill the form. The scheme can be bought both online and offline from Life Insurance Corporation of India.
Here is the link the PDF document for PMVVY scheme
Here is the link to the Pradhan Mantri Vaya Vandana Yojana Application Form Download
Benefits of PMVVY scheme
Below are the benefits of the PMVVY scheme:
- The pensioner will receive an assured return of 8% p.a. for the policy duration of 10 years.
- If the pensioner survives the duration of the policy, the pension will be paid in arrears.
- The pensioner can choose the mode pension payment.
- If the pensioner passes away during the policy tenure, the purchase price will be paid back to the beneficiary.
- If the pensioner survives the entire policy tenure, the purchase price will be paid along with the final pension instalment.
- The pensioner can avail 75% of the purchase price as a loan against the policy after completing 3 years of the policy. The interest on the loan will be recovered from the pension payment that is being made.
- The policyholder can surrender the policy within 15 days if he/she is not happy with the terms of the policy.
Pension Payment Modes
The different modes of payment are:
The payment of pension must be done via Aadhaar Enabled Payment System or National Electronics Fund Transfer (NEFT).
Pradhan Mantri Vaya Vandana Yojana Tax Benefit
Statutory Taxes will be imposed by the Government of Indian or any another constitutional Tax Authority of India, will be as per the tax laws and the tax rates that are applicable.
Tax paid will not be taken into account for the calculation of benefits payable under the PMVVY scheme.