PRIME MINISTER VAYA VANDHANA SCHEME (PMVVS)
Overview
- PMVVS stands for Prime Minister Vaya Vandhana Scheme.
- With the aim of providing long term, guaranteed and immediate pension exclusively to senior citizens, the scheme was launched on 04-May- 2017.
- At that time, senior citizens were offered a time period of 1-year (till May-2018) to deposit in this scheme. Later in 2018, it was announced that senior citizens can deposit in this scheme till 31-March-2020. In May-2020, the government has announced that senior citizens can deposit in this scheme till 31-March-2023.
Key features
- The scheme is offered by government of India which is exclusively for senior citizens (60-years or above). There is no upper limit on the age.
- It is safe investment option that provides guaranteed and immediate pension. You can choose pension frequencies as per your choice.
- The scheme is for the period of 10-years.
Work Process
- Open an account and deposit a lump sum amount. The scheme is operated by LIC (Life insurance Corporation) of India where you can deposit through online at licindia.in or through offline at LIC offices.
- Choose your pension frequency as per your choice (monthly, quarterly, half-yearly or yearly). You will receive pension on a regular basis for 10-years as per your chosen pension frequency.
- Minimum & Maximum pension amount for various pension frequencies are:
Pension Frequency Min. Pension (Rs.) Max. Pension (Rs.) Monthly 1,000 9,250 Quarterly 3,000 27,750 Half-yearly 6,000 55,500 Yearly 12,000 1,11,000
Interest rate for monthly pension frequency is 7.40%, for quarterly- 7.45% and for half-yearly- 7.52% and for yearly 7.66%.
- At the end of 10-years, you will get your deposit amount back if you are alive. If you die during 10-years, then the pension will be stopped immediately and your deposit amount will be given to your nominees or legal heirs.
- The last date to deposit in this scheme is 31-March-2023.
- Minimum & Maximum Deposit amount for various pension frequencies are:
Pension Frequency Min. Deposit Amount Max. Deposit Amount Monthly 1,62,162 15 lakhs Quarterly 1,61,074 14,89,933 Half-yearly 1,59,574 14,76,064 Yearly 1,56,658 14,49,086
Income Tax Benefit
No income tax benefit. The pension amount you receive is taxable.
Pre-mature closure
- Allowed, you can leave this scheme in the middle of 10-years only in exceptional situations like you need money for treatment of critical diseases of yourself or your spouse. But there is penalty for leaving the scheme which is 2% of the deposit amount.
- If you die during the term of 10-years, then the pension will be stopped and the entire deposit amount will be given back to your nominees or legal heirs. No exclusion of suicidal death.
Loan facility & Nomination
- Available after completion of 3-years. The maximum loan amount you can get is 75% of the deposit amount.
- Nomination facility is also available.
Free lock period
It is from 15-days from the date of receipt of the policy. If you deposit online, then it is 30-days.
Free lock means, if you are not happy with the scheme you can return the policy and get deposit money back.
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