Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVVY): We have collected the most important points about the Pradhan Mantri Vaya Vandana Yojana (PMVVY) that are important for exam point of view. 

Pradhan Mantri Vaya Vandana Yojana (PMVVY) / ‘प्रधानमंत्री वय वन्दना योजना’

Purpose: PMVVY is an immediate Annuity pension plan. Under this scheme, a person of age more than 60 years can invest a lump sum amount known as purchase price and get monthly/quarterly/semi-annually or annual pension as per his/her choice. It offers assured pension of 8%.

Enrollment Period: This is not an open-ended scheme. So at present, a person can enroll under this scheme till 31st March, 2020. The government may increase this period. 

Life Insurance Corporation of India (LIC) LIC has been given the sole privilege to operate this scheme. 

Minimum Entry Age: 60 years

Maximum Entry Age: No Such Limit 

Minimum and Maximum Investment Limit/Purchase Limit

You can avail the pension either for monthly/quarterly/semi-annually/annual duration. So the Minimum and Maximum Investment depends on the duration that you have chosen. The same is given below:

Mode of Pension Minimum Purchase Price (in Rs.) Maximum Purchase Price
(in Rs.)
Yearly 1,44,578 14,45,783
Half-Yearly 1,47,601 14,76,015
Quarterly 1,49,068 14,90,683
Monthly 1,50,000 15,00,000

You can invest any lump-sum amount between Rs 1.5 lakhs and 15 Lakhs. 

Minimum and Maximum Pension under PMVVY

The minimum and maximum pension depends on your Lumsump amount invested i.e Your Purchase Limit. The same is given below:

Mode of Pension Minimum Pension (in Rs.) Maximum Pension (in Rs.)
Yearly 12,000 1,20,000
Half-Yearly 6,000 60,000
Quarterly 3,000 30,000
Monthly 1,000 10,000

The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and his/her dependents.

Interest Rate under the PMVVY

  • Yearly-  8.3 %
  • Half-yearly- 8.13 %
  • Quarterly: 8.05 %
  • Monthly: 8.00 %

Term Period of Pradhan Mantri Vaya Vandana Yojana (PMVVY): 10 Years

Premature Exit from the Scheme: The scheme allows premature exit before 10 years under exceptional circumstances like the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.

Benefits under Pradhan Mantri Vaya Vandana Yojana (PMVVY)

First of all, it is important to understand that the policyholder will get the pension at regular intervals as chosen by him. Apart from this:

  • If the Policy Holder survives the 10 years: He will get the Purchase Price Back i.e the total lump sump amount invested back.
  • If the Policy Holder dies during the policy period: The nominee/legal heir will get the Purchase Price.

Loans under PMVVY

Loan facility is available after completion of 3 policy years.

Maximum Loan Limit: 75% of the Purchase Price. 

Some other important points:

  • PMVVY is exempted from GST.
  • However, PMVVY is not exempted from Income Tax.
  • There shall be no exclusion even if the beneficiary dies due to suicide and full Purchase Price shall be payable under PMVVY.


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