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If you are planning to have a perfect retirement then you must apply for the Pradhan Mantri Vaya Vandana Yojana which was created in order to provide basic retirement plans to senior citizens who are above the age of 60 years or older. Given below are some important specifications regarding the Pradhan Mantri Vaya Vandana Yojana 2023 and we will also share with you all the latest additions in the scheme plus the interest rate which is finalized by the authorities to be given in the next fiscal year. Make sure to read the article till the last to get the information regarding the application form and the interest rate applicable to the beneficiaries.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2023
The Life Insurance Corporation of India is running a retirement and pension scheme which is known as the Pradhan Mantri Vaya Vandana Yojana. Life Insurance Corporation of India is one of the largest Life Insurance providers in India and this opportunity provided by the organization is a very prestigious retirement plan. The plan was initiated by the Government in the year 2017 and this plan provides regular pension to the beneficiaries and is a very efficient way to live life after retirement. The scheme also provides assured returns at a rate of 8% to 8.3 % to all of the beneficiaries.
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Details Of प्रधानमंत्री वय वंदना योजना 2023
|Name||Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2023|
|Launched by||Life Insurance Corporation of India|
|Objective||Providing retirement benefits|
|Beneficiaries||Citizens above the age of 60 years|
Objective of PMVVY
The main objective of this program is to create a trustworthy and appealing financial outlet for elderly adults in India to invest their assets and provide a steady income throughout their retirement years. The system intends to reduce financial concerns and improve the quality of life for elderly residents by providing a guaranteed pension income, promoting a feeling of economic security and social well-being.
There are a lot of benefits that will be provided to the beneficiaries under this Pradhan Mantri Vaya Vandana Yojana and some of them are as follows:
- The scheme will provide an assured pension of 7.4 % per annum which will be payable monthly.
- This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March 2022.
- Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
- The pension is also exempted from the payment of GST which is the goods and services tax.
- At the end of the policy which is after 10 years, the purchase price along with the final pension instalment will be payable to the beneficiaries.
- Upon the death of the pensioner, the purchase price shall be paid to the beneficiaries.
- Loan up to 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension instalments and loan to be recovered from claim proceeds.
- The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
- The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependents.
- The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
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Features Of Pradhan Mantri Vaya Vandana Yojana
There are a lot of beneficial features available under this Pradhan Mantri Vaya Vandana Yojana and some of them are as follows:
- The scheme is available to people who are above the age of 60 years or older.
- Senior citizens will be able to get fixed dividends on a monthly, quarterly, half-yearly or annual basis for the period of 10 years as per their personal preference.
- If you are an investor then you can choose your investment either on the pension amount or the purchase price.
- The latest edition of the scheme will have a lower investment interest rate as compared to the previous version.
- The scheme is applicable for 10 years.
- The cumulative investment that can be made in PMVVY is limited to Rs. 15 lakhs per senior citizen and the maximum monthly pension for PMVVY is Rs. 9250 per senior citizen.
- Thus, if both partners are over 60 years of age, the maximum monthly pension could be Rs. 18,500 with a family contribution of Rs. 30 lakhs. The pension in the PMVVY does not depend on the age of the investor.
- The scheme is valid for 10 years and for investments made in the fiscal year 20-21 to 31st March 2021, the government has declared the interest rate to be payable at 7.4% per month i.e. 7.66% per year for a period of 10 years.
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PMVVY Scheme Eligibility Criteria
The applicant must follow the following eligibility criteria to apply for the Pradhan Mantri Vaya Vandana Yojana:-
- The applicant must be a permanent resident of India.
- He/She must be below the age of 60 years.
- The applicant can apply for the scheme at any age.
- The policy term is 10 years.
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The applicant must have the following documents to apply for this yojana.
- Aadhar card
- PAN card
- Birth certificate
- Income certificate
- Residential proof
- Bank account passbook
- Mobile number
- Passport size photograph
Pradhan Mantri Vaya Vandana Yojana 2023 Online Application Procedure
If you want to apply for the Pradhan Mantri Vaya Vandana Yojana by following the online method then you will have to follow the simple procedure given below:-
- You will first have to visit the official website of Life Insurance Corporation of India by clicking on the link given here
- The home page will open on your screen.
- Now you have to click on the registration option displayed on the home screen.
- The registration page will be displayed on your screen where you will have to enter your basic information such as your name and other details.
- Now you have to upload all of the documents related to the claims that you have made.
- You will be successfully registered for the Pradhan Mantri Vaya Vandana Yojana.
PMVVY Offline Application Procedure
If you want to apply for the Pradhan Mantri Vaya Vandana Yojana of line then you will have to follow the simple procedure given below:-
- You will have to visit your nearest LIC branch.
- Go to the counter and apply for the Pradhan Mantri Vaya Vandana Yojana by asking for an application form.
- You have to fill out the application form.
- Make sure that you carry important documents with you to the office.
- You have to submit the application form to the concerned authorities and you will be eligible for the benefit.
PMVVY Scheme Minimum and Maximum Investment
Given below is a table indicating the minimum and maximum investment that the people can make under this scheme:-
|Mode of Pension||Yearly||Half-yearly||Quarterly||Monthly|
|Minimum investment (Purchase Price)||Rs. 1,56,658||Rs. 1,59,574||Rs. 1,61,074||Rs. 1,62,162|
|Maximum investment||Rs. 14,49,086||Rs. 14,76,064||Rs. 14,89,933||Rs. 15,00,000|
Minimum and Maximum Pension Amount
Given below is the table indicating the minimum and the maximum pension amount which is available for the beneficiaries under this scheme:-
|Minimum Pension||Maximum Pension|
|Rs. 1,000 per month||Rs 9,250 per month|
|Rs. 3,000 per quarter||Rs. 27,750 per quarter|
|Rs. 6,000 per half-year||Rs. 55,500 per half-year|
|Rs. 12,000 per year||Rs. 1,11,000 per year|
Terms & Conditions Of Pradhan Mantri Vaya Vandana Yojana
There are a lot of terms and conditions available under the scheme and some of them are as follows:-
- There are four modes of payments such as monthly, quarterly, half-yearly & yearly.
- The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
- The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment.
- The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse.
- The Surrender Value payable in such cases shall be 98% of the Purchase Price.
- The loan facility is available after the completion of 3 policy years.
- The maximum loan that can be granted shall be 75% of the Purchase Price.
- The rate of interest to be charged for the loan amount shall be determined at periodic intervals.
- Loan interest will be recovered from the pension amount payable under the policy.
- The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
- If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.
- The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid if any.
- There shall be no exclusion on account of suicide and full Purchase Price shall be payable.