(PMVVY): Pradhan Mantri Vaya Vandana Yojana Eligibility, Benefits

Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana (PMVVY) in a nutshell

It is a pension scheme for senior citizens of 60 years and above. Under this scheme, senior citizens will get a guaranteed return of 8% for 10 years on opting for monthly pension option. A guaranteed return of 8.3% for 10 years will be available if the annual pension option is chosen. This scheme is exempted from Goods and Service Tax (GST). It will be available for sale for one year from the launch date i.e. 4th May 2017. Since its launch on 4th May 2017, LIC has so far collected Rs 2,705 crore by selling 58,152 policies.

This policy can be purchased in online and also offline.

The UIN of Pradhan Mantri Vaya Vandana Yojana is 512G311V01.

Keeping in mind the well being of senior citizens, some important reforms were made in the “Pradhan Mantri Vaya Vandana Yojana” in the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, which are as follows.

  • The investment limit under PMVVY has been increased to 15 lakhs. Earlier it was seven and a half lakhs. With the increase in the investment limit, senior citizens will be able to get a pension of up to 10 thousand rupees per month.
  • The time limit for investment in PMVVY has been extended by two years till March 31, 2020. Earlier the deadline for investing in it was till May 3, 2018.
  • Under the amendment in PMVVY, the maximum investment limit has been changed from per family to per senior citizen. That is, if both husband and wife are senior in a family, then both of them can invest maximum 15 -15 lakhs, that is, both together can take advantage of bonus by investing a total of 30 lakhs.

Eligibility of Pradhan Mantri Vaya Vandana Yojana:

  minimum maximum
Age 60 Years (Completed) No age limit
Policy term 10 years
Pension mode Monthly, quarterly, half yearly and annually
Purchase price Rs. 1,50,000 monthly
Rs. 1,49,068 quarterly
Rs. 1,47,601 half yearly
Rs.1,44,578 annually
Rs. 15,00,000 monthly
Rs. 14,90,683 quarterly
Rs. 14,76,015 half yearly
Rs. 14,45,783 annually
Pension Amount Rs. 1,000 / – monthly
Rs. 3,000 / – quarterly
Rs.6,000 / – half yearly
Rs.12,000 / – per annum
Rs. 10,000 / – monthly
Rs. 30,000 / – quarterly
Rs. 60,000 / – half yearly
Rs. 1,20,000 / – per annum

Mode of Pension Payment:

Pension will be paid monthly, quarterly, half-yearly and annually to the pensioner. Pension will be paid by NEFT payment or by Aadhaar enabled payment system.

Benefits of Pradhan Mantri Vaya Vandana Yojana:

Pension Payment:

If the policyholder survives the entire policy term i.e. 10 years, then pension will be paid at the end of the term (monthly/quarterly/half yearly/annually) chosen by him.

For every Rs.1000 invested in the scheme,

  • 80 would be paid in monthly mode
  • 80.5 will be paid in quarterly mode
  • 80.3 will be paid in half yearly mode
  • 83 will be paid in annual mode
Death Benefit:

If the policyholder dies within 10 years of the policy term, the purchase price will be returned to his nominee.

Maturity Benefit:

If the policyholder survives the entire policy term i.e. 10 years then he will be paid the last installment of pension along with the purchase amount.

Surrender Value:

This policy allows you to prematurely surrender in critical situations during the policy term. Critical conditions here mean any kind of critical/terminal illness to you or your (spouse). In such a situation, you can surrender the policy and you will get back 98% of the purchase price.


Loan facility is available under the policy on completion of 3 years. Under this, you can take a loan of 75% of the maximum purchase price.
For the financial year 2016-17, the interest rate applicable on the loan is 10% p.a.

Free Look Duration:

In the event that a policyholder isn’t happy with the “Agreements” of the approach, he/she might return the arrangement to the Corporation inside 15 days from the date of receipt of the policy with reasons for objection. (30 days if this policy is purchased online)

If he does so, then the entire amount will be refunded to him after deducting the amount of stamp duty and if any installment of pension has been paid.


Suicide – If a policyholder commits suicide, his/her nominee will be paid the full purchase price.

tax benefit:

The amount deposited under Pradhan Mantri Vaya Vandana Yojana scheme under section 80C of Income Tax 1961 is tax free. However, you will have to pay income tax on the interest earned from the deposited amount.

Pradhan Mantri Vaya Vandana Yojana Example:

Let us understand this scheme with the help of an example.
Suppose Ramesh has invested in this scheme with the following details. He invests a lump sum amount from his savings to ensure a fixed regular income for the next 10 years.

  • Age: 60 Years
  • Purchase Price: Rs. 7,50,000
  • Policy Term: 10 Years
  • Purchase Year: 2017
  • Pension Mode: Monthly
Pradhan Mantri Vaya Vandana Yojana

So, the benefits received by Ramesh in Pradhan Mantri Vaya Vandana Yojana will be as follows.

Official WEBSITE : https://web.umang.gov.in/landing/department/pmvvy.html

South Central Railway Jobs: http://mahaulb-beta.org/south-central-railway-technician-job-notification-2021/

Pension Benefits:

Ramesh will get Rs.5,000 as pension amount at the end of each month for the next 10 years. If the rate of interest earned is 8% then (8% of Rs 7,50,000) / 12 whatever amount he will get every month if he survives for a period of 10 years.

Maturity Benefit:

On coOn fulfillment of 10 years, Ramesh will get back the price tag for example Rs.7,50,000 which he had paid to purchase the plan.

Death Benefit:

If Ramesh dies at the age of 65, 5000 will be paid every month till the age of 65. And after his death the purchase price of the policy i.e. an amount of Rs.7,50,000 will be paid to his nominee.

Surrender Benefit:

Suppose at the age of 68, Ramesh needs his money for the treatment of serious illness of himself or his wife. In such a situation, till the age of 68, he will continue to be paid Rs 5000 as monthly pension, and at the age of 68, when he surrenders the policy, 98% of the purchase price will be returned to him. . i.e. 98% of 7,50,000 = Rs 7,35,000

If you have any problem, suggestion or comment regarding this scheme, then definitely write it in the comment box.

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