Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana

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Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed life insurance pension scheme launched to provide financial security and stability to senior citizens in India. The scheme launched by the Life Insurance of India (LIC) aims to provide a source of regular income for individuals aged 60 years and above. This comprehensive guide will highlight the details of PMVVY, including its features, benefits, eligibility criteria, investment options and application process. Whether you are a senior citizen planning for retirement or someone seeking information on behalf of your elderly family members, this article will provide a thorough understanding of PMVVY and help you make informed decisions about your financial future.

Eligibility Criteria for the PM Vaya Vandana Yojana

To be eligible for the PMVVY scheme, individuals must meet specific criteria set by the government. Here are the main requirements to qualify for this pension scheme from LIC:

  • Age
  • Nationality
  • Investment Limit
  • Policy Term

The minimum age for participation is 60 years, ensuring that the scheme caters specifically to senior citizens.

This scheme is available to Indian citizens and Non-Resident Indians (NRIs) living in India.

A person can invest a maximum of INR 15 lakh per person in the PMVVY scheme. This limit ensures fair distribution of benefits among the participants.

The scheme offers a policy term of 10 years, giving retirees ample period to enjoy pension benefits.

Particulars Specifications
Entry Age Minimum: 60 Years Maximum: No Limit
Policy Term 10 Years
Minimum Pension INR 1K per month INR 3K per quarter INR 6K per half-year INR 12K per year
Maximum Pension INR 10K per month INR 30K per quarter INR 60K per half-year INR 120K per year

Benefits of Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension plan launched by the Government of India to provide financial security to senior citizens. The scheme offers a range of benefits designed to meet the needs and preferences of the elderly population. Here are some of the key benefits of PMVVY:


Higher interest rates

One of the major benefits of PMVVY is the attractive interest rates it offers. Currently, the scheme offers an interest rate of 7.4% per annum, which is higher than most other traditional investment options. This ensures that senior citizens have a steady income source throughout their retirement years.


Guaranteed income

PMVVY offers guaranteed income for a period of 10 years. Senior citizens can enjoy regular pension payments, which will help them meet their daily expenses without financial stress. The certainty of a fixed income is an excellent relief for retirees who may be concerned about market fluctuations or their ability to generate consistent income.


Flexible payout options

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme offers multiple payment options to suit pensioners' individual needs and preferences. They can receive their pension monthly, quarterly, half-yearly or annually, depending on their financial needs. This flexibility allows senior citizens to plan their expenses and manage their finances effectively.


Tax benefits

The PMVVY provides tax benefits under Section 80C of the Income Tax Act, 1961. The premium paid for the plan is eligible for deduction up to a maximum limit of INR 1.5 lakh. This helps senior citizens save tax and encourages them to invest in LIC pension plans that secure their future financial well-being.


No medical examination

PMVVY does not require senior citizens to undergo a medical checkup, unlike other insurance or pension schemes. This is an important benefit for retirees who may already have health issues or may find it challenging to pass medical tests due to age. The absence of medical examinations ensures that the scheme is easily accessible to all eligible senior citizens.


Loan Facility

Pradhan Mantri Vaya Vandana Yojana (PMVVY) allows policyholders to access loan facilities after completing three policy years. Policyholders can borrow up to 75% of the purchase price of the policy. This loan amount can be used to meet immediate financial needs or medical expenses that may arise.

Premium and Pension Amounts of PMVVY

The pension and premium payment for the PMVVY scheme is determined based on an individual's investments and the chosen pension option. Let us explore the various options available under this scheme:

  • Mode of Pension Payment

    Individuals can choose to receive their pension on a monthly, quarterly, half-yearly, or annual basis, depending on their preference and financial requirements.

  • Minimum and Maximum Pension

    The minimum pension amount payable under this scheme is INR 1K monthly, while the maximum pension amount is capped at INR 10K monthly.

  • Premium Payment

    Participants can choose between two premium payment modes - a lump sum amount or an instalment option. For the instalment option, the premium is paid throughout the policy term, either monthly, quarterly, half-yearly, or annually.

Purchase Price Payment

Participants in the scheme can choose to enrol by making a one-time payment. They can decide whether to invest a specific amount as the purchase price or opt for a predetermined pension amount. The following table provides details regarding the minimum and maximum pension amounts that can be availed based on different modes of payment:

Pension mode Minimum Purchase Price Maximum Purchase Price
Monthly INR 1,50,000 INR 15,00,000
Quarterly INR 1,49,068 INR 14,90,683
Half-Yearly INR 1,47,601 INR 14,76,015
Annually INR 1,44,578 INR 14,45,783

Online Application Process for PMVVY Scheme


Applying for the PMVVY scheme is a simple and hassle-free process. Here's a step-by-step guide to help you navigate through the application procedure:

  • Visit the official website of the Life Insurance Corporation (LIC) of India, which is the administering authority for the PMVVY scheme.
  • Go to the PMVVY section on the website and click on the "Apply Online" option.
  • Fill in the required personal and financial details accurately in the online application form.
  • Submit the necessary documents for verification, such as proof of age, identity, and address.
  • Pay the premium amount online or through any of the available payment options.
  • Review the application summary before submitting it and ensure all information is correct.
  • Once the application is processed and approved, you will receive a policy document containing the details of your PMVVY scheme.

Offline Application Process of Pradhan Mantri Vaya Vandana Yojana (PMVVY) Scheme

To apply offline for the Pradhan Mantri Vaya Vandana Yojana (PMVVY) Scheme, follow these below-mentioned steps:


Required Documents to Apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY) Scheme

Below are the documents that you need to submit to apply for the Pradhan Mantri Vaya Vandana Yojana (PMVVY) Scheme:

  • Aadhar Card
  • Age Proof
  • Passport Size Photograph
  • PAN Card
  • Bank Account Details


Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme designed to provide financial security to senior citizens in India. With its attractive features, guaranteed pension income and high-interest rates, PMVVY provides a reliable source of income during retirement. By understanding the eligibility criteria, investment options and application process outlined in this comprehensive guide, individuals can make informed decisions and avail themselves of the scheme's benefits.

It is advisable to consult RenewBuy’s POSP Advisor for detailed information and assistance in applying for the PMVVY. Secure your retirement with the Pradhan Mantri Vaya Vandana Yojana and ensure a financially stable future.