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Pradhan Mantri Vaya Vandana Yojana


Pardhan Mantri Vaya Vandana Yojna is one of the good investment plans for senior citizens, who has completed 60 years or above. The interest earned from this plan can meet out your household expenses while the balance amount can be further invested in any other schemes also. It is a fixed income scheme, the money you invested is not subject to market risks and is quite safe.

“Never spend your money before you have it.”
  • LIC of India has been given the sole privilege to operate this scheme.
  • This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to our website licindia.in.
  • The last date to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been extended to 31st March 2020.
Opening of Account-
  • Any person with the age of 60 years (completed) or above.
Minimum or Maximum amount can be deposited-
  • The investment limit has been increased to 15 lakhs under the Pradhan Mantri Vaya Vandana Yojana (PMVVY). The earlier limit was 7.5 lakhs.
  • The limit on maximum investment has now revised to per senior citizen (and not per family). So now in a family if both husband and wife are senior citizen. Both can invest 15 lakhs each as purchase price (total 30 lakhs)
Mode of Investment-
  • The amount can be deposited through cheque, demand draft or online transfer.
Pension benefit-
  • Pension scheme which will avail guaranteed 8% return in monthly mode and 8.3% return in yearly mode.
  • Pension can be received on monthly, quarterly, half yearly or yearly basis.
Documents required-
  • Residential proof of the applicant
  • Identity proof of the applicant
  • Proof of date of birth
  • Photograph of the applicant
See the related post : How to save Income Tax
Partial withdrawal- 
  • In specific cases like critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of 10-year term.
  • The surrender value will be 98% of purchase price means 2% will be deducted of the investment amount.
Loan facility-
  • Loan can be taken after completion of 3 years.
  • The maximum loan that can be granted shall be 75% of the Purchase Price.
  • The rate of interest to be charged for loan amount shall be determined at periodic intervals.
  • Loan interest will be recovered from 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.
Death benefit
  • Deposited amount will be returned to nominee or legal heirs.
See the related post : Sovereign Gold Bond Scheme
Maturity benefit-
  • On completion of 10 years, the deposited amount along with last due pension will be returned to policy holder.
Sample Pension rates per Rs.1000/- Purchase Price-

The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:

Yearly: Rs. 83.00 p.a.

Half-yearly: Rs. 81.30 p.a.

Quarterly: Rs. 80.50 p.a.

Monthly: Rs. 80.00 p.a.

The pension instalment shall be rounded off to the nearest rupee


If pension received on monthly basis-

Example 1- Mr. Ram aged of completed 60 years invested Rs. 7,50,000 under Pardhan Mantri Vaya Vandana Yojna (PMVVY), what will be the amount of monthly pension?


Mr. Ram will get Rs. 5,000 as pension on monthly basis, this is guaranteed pension scheme for 10 years.


If pension received on yearly basis-

Example 2- Mr. Ram aged of completed 60 years invested Rs. 7,50,000 under Pardhan Mantri Vaya Vandana Yojna (PMVVY), what will be the amount of annual pension?


Mr. Ram will get Rs. 62,250 as pension on annual basis, this is guaranteed pension scheme for 10 years.



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