Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2023: Eligibility, Application Form and Apply Link: The pension plan known as Pradhan Mantri Vaya Vandana Yojana (PMVVY) is only available to people over the age of 60.
The maximum investment limit per senior citizen under this scheme is Rs 15 lakh.
The scheme can be purchased by paying the unit purchase price. The pensioner has the option to choose either the pension amount or the purchase price.
More information about PMVVY
The minimum and maximum purchase price under various types of pension will be as follows:
Type of Pension Minimum and Maximum Prices for Purchases
- Annual Rs. 1,44,578/- Rs. 14,45,783/-
- 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/-
Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2023
The modes of pension payment are monthly, quarterly, half yearly and yearly. Payment of pension will be through NEFT or Aadhaar enabled payment system.
The first installment of pension will be paid after 1 year, 6 months, 3 months or 1 month depending on the mode of pension payment, which is annually, half-yearly, quarterly or monthly respectively.
Free Look Period: If a policyholder is not satisfied with the policy, he can return the policy within 15 days (30 days if the policy is purchased online) from the date of receipt of the policy indicating the reason for objection. The amount refunded within the free look period is the purchase price deposited by the policyholder after deducting stamp duty and charges for pension paid, if any.
Benefits of Pradhan Mantri Vaya Vandana Yojana
Rate of return
The PMVVY scheme offers subscribers an assured return of 7% to 9% for 10 years. (Government fixes and revises rates of return)
PMVVY Pension Amount
Minimum Pension
- Rs. 1,000/- per month
- Rs. 3,000/- per quarter
- Rs.6,000/- per half-year
- Rs.12,000/- per annum
Maximum Pension
- Rs. 10,000/-per month
- Rs. 30,000/- per quarter
- Rs. 60,000/- per half-year
- Rs. 1,20,000/- per annum
Pradhan Mantri Vaya Vandana Yojana Maturity Benefit
The full principal amount (including final pension and purchase price) will be paid after the 10-year term of the policy.
Pension Payment: Pension is payable at the end of each period as per the selected frequency (monthly, quarterly, half-yearly or annually) during the 10-year policy term.
PMVVY Death Benefit
On death of the pensioner at any time during the 10 year period, the purchase price will be returned to the legal heirs/nominees.
Suicide: There will be no exclusion on account of suicide and the full purchase price will be payable.
PMVVY Loan Benefit
After three years, an emergency loan of up to 75% of the purchase price can be used to cover costs. After three years, an emergency loan of up to 75% of the purchase price can be used to cover costs.
However, the rate of interest for the loan amount will be charged as determined by the Government from time to time and the loan interest will be charged from the amount of pension payable under the policy.
Surrender value
The scheme allows premature exit during the policy term under exceptional circumstances such as when the pensioner needs money to treat any critical/terminal illness of himself or spouse.
Planability of Prime Minister Vay Vandana Yojana
- There is no specific eligibility criteria for the PMVVY scheme except that the subscriber should be a senior citizen, ie (60 years and above).
- Applicant must be an Indian citizen.
- The applicant should be willing to avail the policy tenure of ten years.
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