PMVVY Scheme: The central government launched this scheme to provide a secure income and protect the elderly from market fluctuations. Currently, the PM Vaya Vandana Yojana (PMVVY) is a highly beneficial scheme for senior citizens. This scheme is implemented through the Life Insurance Corporation of India (LIC), and investors receive a fixed pension with a government guarantee. This scheme was designed to ensure a stable source of income as they age.
Who Can Invest?
To invest in the Pradhan Mantri Vaya Vandana Yojana, a minimum age of 60 years is required. There is no upper age limit, meaning anyone above 60 years of age can join. The policy term is fixed at 10 years. During this period, investors can choose monthly, quarterly, half-yearly, or annual pension options as per their convenience. The minimum pension under the scheme is ₹1,000 per month, and the maximum is ₹5,000 per month. Similarly, there are provisions for minimum and maximum pension amounts, such as quarterly, half-yearly, and annual.
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How to Receive Pension and Returns
Investing in this scheme provides regular payments according to the chosen pension frequency during the 10-year policy term. If the pensioner is alive at the end of the policy term, they receive the full purchase price back, along with their final pension. In the event of the pensioner’s death during the policy term, the purchase price is returned to the nominee, i.e., the beneficiary. This scheme not only provides senior citizens with a pension but also ensures the safety of their invested funds.
Loan Facility Available on the Policy
The Pradhan Mantri Vaya Vandana Yojana also offers a loan facility after completion of three years. The maximum loan limit is 75 percent of the purchase price. The interest charged on the loan is determined periodically and is deducted from the pension. The interest payment is added as per the pension due date. In the event of surrendering the policy, the outstanding loan amount is added to the claim amount.
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A strong post-retirement resource
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is particularly beneficial for senior citizens who require a regular income after retirement. The key feature of this scheme is that it is free from market risk, and the pension is absolutely fixed. Benefits such as government guarantee, secure returns, stable pension payments, and loan facility make it a reliable investment option for the elderly.