Pradhan Mantri Vaya Vandana Yojana 2023 is a pension scheme being run by the Ministry of Finance to provide immediate pension for senior citizens of 60 years and above. PMVVY pension scheme is being implemented with LIC and interested and eligible candidates can buy LIC PM Vaya Vandana Yojana plan online at www.licindia.in. The revised PMVVY LIC Plan 856 can be purchased by paying a lumpsum amount. For Financial Year 2022-23, the scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023.
LIC PM Vaya Vandana Yojana 2023 plan provides pension payments of stated amount for the policy term of 10 years. PM Vaya Vandana Yojana envisages an assured rate of return of 7.4% per annum (for monthly pension) for the financial year 2023. In this LIC Pension Plan 856, there is a return of purchase price at the end of 10 years.
PMVVY Scheme last date was 31 March 2020, but central govt. has extended its deadline for 3 years i.e Now PMVVY last date is 31 March 2023. PM Vaya Vandana Yojana Pension would be paid at the end of each period as per payment mode chosen starts as early as next month if monthly mode is chosen. On the death of the pensioner at any time during the term of 10 years, the purchase price will be refunded to the legal heirs / nominees.
LIC PMVVY Pension Scheme Apply Online
Pradhan Mantri Vaya Vandana Yojana was recently modified in May 2020 by the central government. PMVVY is a non-linked, non-participating, pension scheme subsidized by the Government of India. According to the new changes, the new interest rate would be reviewed and decided at the beginning of new every financial year by the Ministry of Finance. The scheme was extended for 3 years up to 31st March 2023.
Pradhan Mantri Vaya Vandana Yojana Application Form 2023
The application form for PMVVY LIC pension scheme can be downloaded from the official website of LIC India or obtained from the nearby office of LIC. However, candidates can also purchase the PM Vaya Vandana Yojana pension plan at the official website of LIC India at licindia.in using the below given procedure.
STEP 1: Visit the Online Policy Page at the official website of LIC India at https://licindia.in/
STEP 2: Now scroll over the “Products” link in the header and click at “Pension Plan” option or directly click https://licindia.in/Products/Pension-Plans to open page containing pension plans of LIC India.
STEP 3: Select Plan No. 856 with Product Name as “Pradhan Mantri Vaya Vandana Yojana” and UIN No. 512G336V01. Then the PMVVY Pension Plan (LIC Plan Number 856) apply online page will open.
STEP 4: Click at the “Apply Now” link to open the LIC India PMVVY Online Application Form 2023 as shown below:-
STEP 5: Enter name, mobile number, email address, date of birth, products, annual income, number of dependents, country, state, city name, Pin code and click at “Submit” button to fillup PM Vaya Vandana Yojana online registration form.
Pension payment modes available for Pradhan Mantri Vaya Vandana Yojana are monthly, quarterly, half-yearly and yearly. The minimum investment amount is Rs. 1.50 lakh.
PM Vaya Vandana Yojana (PMVVY) Interest Rates
For the first financial year under the extended PMVVY scheme, the interest rate has been fixed at 7.4% for monthly pension which is equivalent to 7.66% per annum. Pension interest rates for 2023 payable under different modes of Payment (Yearly, Half Yearly, Quarterly, Monthly) are as under
|Mode of Pension||Effective Interest Rate per annum|
LIC PMVVY Scheme PDF
The revised guidelines and brochure PDF of the Pradhan Mantri Vaya Vandana Yojana can be downloaded using the below links.
PMVVY Investment / Pension Amount
Below are the complete details of investment and pension amount for different modes of pension
Minimum and maximum Purchase price under different modes of Pension:
|Mode of Pension||Minimum Purchase Price (Rs.)||Corresponding Pension Amount|
|Yearly||1,56,658||12,000 per annum|
|Half-Yearly||1,59,574||6,000 Half year|
|Quarterly||1,61,074||3,000 per Qtr.|
|Monthly||1,62,162||1,000 per month|
Minimum and maximum Pension under different modes of Pension:
|Mode of Pension||Maximum Purchase Price (Rs.)||Corresponding Pension Amount|
|Yearly||14,49,086||1,11,000 per annum|
|Half-Yearly||14,76,064||55,500 per half year|
|Quarterly||14,89,933||27,750 per Qtr.|
|Monthly||15,00,000||9,250 per month|
PMVVY Loan Facility
This is one of the biggest advantages of the Pradhan Mantri Vaya Vandana Yojana. Under the scheme, applicants can apply for loan after completion of 3 policy years. Policy holders can get up to 75% of the purchase price as loan. The rate of interest for the loan is determined by the LIC of India at periodic intervals.
Loan interest will be recovered from the 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.
Eligibility Criteria for Pradhan Mantri Vaya Vandana Yojana
Below is the basic eligibility criteria for the PM Vaya Vandana Yojana pension scheme.
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term: 10 years
- Minimum Pension: 1,000/- per month, 3,000/- per quarter, 6,000/- per 6 months, Rs. 12,000/- per year
- Maximum Pension: 9,250/- per month, 27,750/- per quarter, 55,500/- per half-year, 1,11,000/- per year
Total amount of purchase price under all the policies taken under Pradhan Mantri Vaya Vandana Yojana shall not exceed Rs. 15 lakhs.
LIC PMVVY Scheme Features
The important features and highlights of LIC Plan Number 842 are as follows:-
|Medical||No medical examination is required.|
|Surrender Value||Premature exit is allowed during policy term under exceptional circumstances like Critical/Terminal illness of self or spouse. Surrender Value payable in such cases is 98% of the Purchase Price.|
|Loan||Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75% of the purchase price.|
|Suicide||There is no exclusion in case of suicide. In such a case, the full purchase price will be payable to the nominee / legal heir.|
Aadhaar Card Mandatory for PMVVY Benefits
An individual eligible for receiving the benefit under PM Vaya Vandana Yojana (PMVVY scheme) shall hereby be required to furnish proof of possession of Aadhaar number. As per the Finance Ministry notification, applicant must possess the unique 12-digit biometric identity number or undergo Aadhaar authentication. In case aadhar card is not available, applicant must enroll for Aadhaar number first before making PM Vaya Vandana Yojana registration.
Tax Benefits of PM Vaya Vandana Yojana
PM Vaya Vandana Yojana pension scheme for senior citizens is not a tax saving scheme but an investment plan to fund their retirement. All the elderly people above 60 years were allowed to invest a max. amount of Rs. 15 lakh on or before 31 March 2023. For the policy term of 10 years, senior citizens can get a minimum pension of Rs. 1,000 per month and a maximum pension of Rs. 9,250 per month depending on the amount invested.
Will you get tax savings benefit under section 80C?
Returns from this scheme will be taxed as per existing tax laws and the rate of tax as applicable from time to time. The scheme is exempted from Goods and Services Tax (GST). All general insurance scheme includes 18 percent GST such as term insurance. However, to give a relief to senior citizens, there are a few LIC schemes including Pradhan Mantri Vaya Vandana Yojana scheme, which continues to be exempted under GST as they were exempted from service tax before July 1, 2017.
This PMVVY scheme will not allow investor to claim a deduction for investments up to Rs. 1.5 lakh under section 80C of the Income Tax Act. This scheme is not an eligible investment under this section of the Income Tax Act. However, a representation can be filed before IT dept. to include the sum paid under PMVVY scheme as an eligible deduction under section 80C of Income Tax Act to bring this scheme on par with Senior Citizens Saving Scheme. The inclusion however, will require legislative amendment which can be made in the subsequent budgets.
PMVVY Frequently Asked Questions (FAQ’s)
What is PM Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens offered by Life insurance Corporation (LIC) and run by the ministry of Finance, Government of India.
What is the interest rate under PMVVY Scheme
As per the new guidelines, the interest rate for FY 2023 for PMVVY Scheme is 7.4% per annum and thereafter to be reset every year.
What is the minimum and maximum entry age for PM Vaya Vandana Scheme
The minimum entry age for PMVVY Scheme is 60 years while the maximum entry age has no limit.
What is the minimum and maximum pension amount for PMVVY Scheme
The minimum pension amount is Rs. 1,000 per month while the maximum pension amount is Rs. 9,250 per month.
What is the Maturity Benefit for PMVVY
If the pensioner survives till the end of the policy term of 10 years, purchase price of the annuity along with final pension installment will be payable to the policyholder.
What is the death benefit of PMVVY
If the pensioner dies during the policy term of 10 years, the purchase price of the annuity scheme will be refunded to the legal heir / nominee.
How to apply online for PMVVY
Citizens can now apply online for PMVVY Scheme at the official website of Life Insurance Corporation (LIC) India at www.licindia.in
Is Aadhaar Card Mandatory for PMVVY
Yes, Aadhaar Card is mandatory
What is minimum and maximum purchase amount under PMVVY
The minimum investment amount is Rs. 1,62,162 for Rs. 1,000 p.m pension while the maximum investment is Rs. 15,00,000 for Rs. 9,250 p.m as pension.
What is the Last Date of PMVVY
The new last date for PMVVY policy purchase is 31 March 2023.
Read more FAQ’s through the link – https://licindia.in/getattachment/Products/Pension-Plans/PMVVY_FAQ_Final.pdf.aspx
LIC PMVVY Helpline
Visit the official website of LIC India at licindia.in for more details or reach at the below helpline contact details
PHONE: +91-022 6827 6827 (24*7)