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Pradhan Mantri Vaya Vandana Yojana - Complete Review

Pradhan Mantri Vaya Vandana Yojana - Complete Review

The Ministry of Finance of India has launched a new Pension Scheme for the senior citizens in New Delhi. The Scheme is  named as Pradhan Mantri Vaya Vandana Yojana( PMVVY). Under this scheme, the elderly people of age group of 60 years and  above will avail the benefit of guaranteed interest of 8% for consecutive 10 years. The scheme can be purchased online  through the Life Insurance Corporation of India which is given the complete privilege to operate this scheme. As well as it can be bought offline. The scheme is launched by Union Finance Minister Arun Jaitley.

Features of the Scheme-
There are many features of the PMVVY scheme
  • Under the Scheme, there will be an assured return of 8% p.a. payable monthly depending on the investment made by the pensioners for  10 years.
  • It can be purchased through online and offline.
  • The pension is payable after the completion of each period during the 10 years policy term. At the time of purchase the beneficiaries can get the pension as per the frequency of yearly/quarterly/monthly chosen by them.
  • It provides an assured return of 8% per annum which is payable at a monthly basis on single lump sum for 10 years.
  • In case of yearly pension the minimum investment should be Rs. 1.44 Lakh and the maximum investment must be 7.22 Lakh.
  • In case of monthly pension, minimum amount of Rs. 1.5 Lakh must be invested while the maximum amount must be Rs. 7.5 Lakh.
  • The interest of loan must be recovered from installments of pension and the loan must be recovered from the claim proceeds.
  • This scheme is exempted from any kind of service tax or GST.

Benefits of the Pradhan Mantri Vaya Vandana Yojana-
The scheme has several benefits.
  • Maturity Benefit- If the pensioner survives the entire policy term of 10 years, the amount invested by him along with the final pension instalment must be payable to him. 
  • Death Benefit- If the pensioner has died during the policy term, the amount invested by him must be given to the  beneficiary.
  • Policy Surrender-There will also be the benefit of emergency exit from the policy. If any kind of extra-ordinary case like  the medical emergency of the policy holders or their spouses, the policy may be surrendered before the completion of the 10 years policy term. The surrender value must be 98% of the purchase price.
View of the Govt.-
According to the Govt. this scheme is a boon for the senior citizens. It will immensely help the senior citizens as it provides a high interest rate while the  interest rate in banks are falling day by day. Apart from that there is a guaranteed return which is backed by Govt. The pension scheme must offer more benefits to the senior citizens to avail steady flow of income at the time of fall of the interest rates.

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