The Pradhan Mantri Vaya Vandana Yojana, in short PMVVY, the scheme was launched on the 4th of May 2017 by the Indian Government and was available till the 31st of March 2020. Later it was extended till the 31st of March 2023. The Indian Government backs up the Pradhan Mantri Vaya Vandana Yojana scheme, and the scheme’s policies are provided by the Life Insurance Corporation(LIC).
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme targets India’s senior citizens. Under this scheme, seniors aged 60 years and above will be provided a pension plan. No Goods and Service Tax(GST) will be applied to this pension.
What is the scheme of Pradhan Mantri Vaya Vandana Yojana?
Now to understand the Pradhan Mantri Vaya Vandana Yojana scheme more clearly, the applicant must go through these specific points :
● This scheme provides senior citizens 60 years and older with an assured rate of return on their deposits. There is no maximum age limit.
● The same rates for a pension have continued for the current financial year, from 2022-2023.
● If one takes the pension every year, then the rate is 7.66%, and if the pension is taken on a half-yearly basis, then the rate is 7.52%, and if one takes the pension every quarter, then the rate is 7.45 %, and the monthly pension rate is 7.40%.
● The policy is for ten years from the deposit date, where the individual applying for it needs to pay a one-time premium.
● The maximum amount of money a single individual can deposit is Rs 15,00,000 under the Pradhan Mantri Vaya Vandana Yojana scheme.
Who is eligible for Pradhan Mantri Vaya Vandana Yojana Scheme (PMVVY)?
1. The minimum entry age to be eligible for Pradhan Mantri Vaya Vandana Yojana is 60 years. Applicants more than that age can’t apply to this scheme.
2. The maximum entry age is of no limit.
3. The policy term is up to 10 years.
4. The investment limit per senior citizen is Rs 15 lakh.
The Pradhan Mantri Vaya Vandana Yojana Scheme can be applied offline and online through the Life Insurance Corporation (LIC) of India, which has been given the sole privilege of operating it.
Documents required for Pradhan Mantri Vaya Vandana Yojana (PMVVY) Registration
The following are the documents needed for the registration of the Pradhan Mantri Vaya Vandana Yojana scheme:
● Adhaar card and PAN card of the person.
● Proof of address where the person is living.
● Proof of age or birth certificate.
● A passport-size photo of the applicant.
● A passbook of a registered bank account.
● Documents indicate that the applicant has retired from their job or service.
What are the benefits of the Pradhan Mantri Vaya Vandana Yojana Scheme?
Pradhan Mantri Vaya Vandana Yojana is a retirement cum pension scheme that is operated and managed by the Life Insurance Corporation of India (LIC), and it provides its customers with many fruitful benefits like:
● Return Rate: Under the Pradhan Mantri Vaya Vandana Yojana scheme, the applicant will receive a return of 7%-8% per annum for the policy duration of 10 years.
● Maturity benefit: If the applicant lives for the entire policy period, i.e., ten years, then the entire amount will be paid back to the applicant.
● Death Benefit: The purchase price of the Pradhan Mantri Vaya Vandana Yojana scheme will be paid to the beneficiary or nominee if the applicant passes away during the policy period.
● Pension payment: The pension is payable at the end of each period. The policyholder can also choose the mode by which the pension must be made, i.e., monthly, quarterly, half-yearly or yearly.
● Loan benefit: After completing three years of the policy, the pensioner can avail of loans against the policy. A maximum of 75% of the purchase price can be availed as a loan. If any loan has been sanctioned up to the 30th of April 2018, the interest rate is 10% per annum, payable half-yearly throughout the policy period. The interest on the loan will be recovered from the pension payment that is being made.
● Free-look period: If the policyholder is unhappy with the policy terms, the applicant can return the approach to the Life Insurance Corporation of India (LIC) within 30 days of the policy receipt date. However, the free-look period is 15 days if it is bought offline. The amount refundable is the purchase price after the deduction of stamp charges.
● The scheme is exempted from GST ( Goods and Service Tax)
● There is an exclusion to this policy’s purchase price return. The total purchase price is payable if a policyholder commits suicide.
How to apply for Pradhan Mantri Vaya Vandana Yojana Scheme?
The applicant can apply to Pradhan Mantri Vaya Vandana Yojana Scheme in two ways: 1. Online Procedure:
● Log in to the official website of LIC (https://licindia.in/)
● Click on the “Buy Online Policies” option.
● The applicant will get a “Click here” button by scrolling down. Click on it.
● Then click on the ‘Pradhan Manti Vaya Vandana Yojana’ option under the “Buy Policy Online” heading.
● A page will open, then click on the “Buy Policy Option” heading.
● Enter the contact details of the applicant.
● Click on Proceed after entering the details.
● Fill out the online application form.
● Upload the documents as required, then click on the submit button for final submission.
1. Offline Procedure:
● Visit your nearest LIC branch and ask for the Pradhan Manti Vaya Vandana Yojana scheme form. The form can also be downloaded from here. (https://www.insurance21.in/)
● Fill out the application.
● Submit the filled application with the required documents to the LIC branch.
● After verifying the applicant’s original documents, the LIC agent will start the policy.
What is the interest rate of the Pradhan Mantri Vaya Vandana Yojana Scheme in 2022?
Pradhan Mantri Vaya Vandana Yojana scheme (PMVVY) provides a return of 7.4% per annum, which can be payable monthly. But if you apply for a monthly pension scheme, the Government offers a return of 7.4% annually, equivalent to 7.66% per annum. However, the Pradhan Mantri Vaya Vandana Yojana scheme essentially operates as a pension plan and does not take any GST or service charge.
How to Claim Pradhan Mantri Vaya Vandana Yojana Scheme?
● The applicant can take their pension in any of these modes.
1. Monthly Mode.
2. Quarterly Mode.
3. Half Yearly Mode.
4. Yearly Mode.
● The minimum pension one can take every month is Rs 1000, the quarterly basis is Rs 3000, the half-yearly basis is Rs 6000, and the yearly basis is Rs 12000, and that’s how the deposit amount is calculated.
● One can take the maximum amount of pension on a monthly, quarterly, half-yearly, and yearly basis is Rs 9250, Rs 27,750, Rs 55,500 and Rs 1,11,000, respectively.
● The total deposit amount is returned to the individual with the last pension after completing ten years.
● Suppose the policyholder dies within ten years after the start of the policy. In that case, the nominee or beneficiary of the pension holder immediately gets back the total deposit amount that has been deposited by the pension holder initially. And after that, if the nominee wants to continue with the scheme’s benefits, they won’t be able to do that.
How to Check Pradhan Mantri Jeevan Jyoti Bima Yojana Status?
The following steps to check the policy status are:
● Visit the UMANG website.
● Click on the open button on basic policy details by scrolling down.
● Login with MPIN or with OTP.
● Give your phone number, MPIN or OTP
● Click on the Login button.
● Go to the policy primary details button and click it.
● Enter your policy number and phone number.
● Press the view details button. Eventually, you can see your Pradhan Mantri Vaya Vandana Yojana status.
Conclusion
Pradhan Mantri Vaya Vandana Yojana scheme is a great initiative and investment option for senior citizens. This can be helpful to the senior people who are looking for a regular pension. If the applicant plans to apply for this scheme, they must have considerable money.