Vaya Vandana Yojana: Launched on May 4, 2017, by the Government of India, the Pradhan Mantri Vaya Vandana Yojana is a vital initiative dedicated to enhancing the financial well-being of senior citizens.
This pension scheme is specifically designed to provide a dependable income source for individuals aged 60 years or older during their retirement. Participants have the flexibility to choose between monthly and annual pension options, both offering competitive interest rates.
Opting for the monthly pension ensures a steady 8% interest rate over a 10-year period, while the annual pension option provides a slightly higher interest rate of 8.3% for the same duration.
The Pradhan Mantri Vaya Vandana Yojana functions as a reliable investment avenue for seniors, guaranteeing a consistent return on their savings. Beyond fostering financial independence for the elderly, this initiative presents a secure and appealing investment opportunity, contributing significantly to the overall financial stability and well-being of India’s senior population.
Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana, launched by the Government of India, is a key social security and pension plan now managed by LIC (Life Insurance Corporation of India).
Initially, the investment limit was seven and a half lakh, but it’s recently been raised to Rs 15 lakh, providing more flexibility for investors.
The deadline for investing in the PMVVY scheme 2023 was initially March 31, 2022, but it’s now extended to March 31, 2023, giving individuals more time to benefit from this pension plan.
If you’re looking for easy-to-understand information about the Pradhan Mantri Vaya Vandana Yojana 2023, covering the application process, required documents, eligibility criteria, guidelines, and more, this article is your go-to resource.
We’ll walk you through the details to help you better grasp the benefits and guide eligible individuals on how to participate.
Vaya Vandana Yojana Overview
|Vaya Vandana Yojana
|Who launched it?
|Life Insurance Corporation of India
|Citizens of India
|To provide all the important information about Pradhan Mantri Vaya Vandana Yojana
A Six key details regarding the PM Vaya Vandana Yojana 2023
- Senior citizens who are interested in this initiative can deposit a maximum lump sum of Rs 1500000 to receive a pension of ₹ 10,000 each month.
- As per Section 80C of the Income Tax Act 1961, the lump sum money to be deposited under this plan is free from taxes. However, income tax must be paid by the beneficiary on the interest earned from the invested capital.
- The insured will receive interest at an 8% rate if he desires to receive a pension each month. Should he choose to get a pension once a year, he will receive interest at an 8.3% rate.
- The policyholder can choose to receive a monthly, quarterly, half-yearly, or annual pension during the 10-year insurance period.
- The Pradhan Mantri Vaya Vandana Yojana beneficiary does not require a medical examination in order to enroll.
- After ten years of investing under this program, the final pension payout is made together with a return of the investment amount. The nominee will receive a reimbursement of the deposit amount if the pensioner passes away within ten years of enrolling in the program.
Pradhan Mantri Vaya Vandana Yojana Purchase Price and Pension Amount
|Turn of pension
|Minimum Purchase Price
|Amount of pension
|Maximum Purchase Price
|Amount of pension
|1200 per annum
|111000 per annum
|6000 half yearly
|55500 per half yearly
|3000 per quarter
|27750 per quarter
|1000 per month
|9250 per month
Vaya Vandana Yojana Benefits
- The Pradhan Mantri Vaya Vandana Yojana does not offer tax benefits.
- This strategy is one of investment.
- Before March 31, 2023, all citizens over 60 are eligible to invest up to Rs 15,00,000 in their investments.
- Pensions for citizens will range from ₹ 1000 to ₹ 9250 per month, depending on the investment.
- The tax laws in effect at the time and the corresponding tax rate are applied to the returns obtained using this program.
- In addition, this scheme is not subject to GST.
- Out of all types of general insurance, Tom Insurance is subject to 18% GST. However, the Pradhan Mantri Vaya Vandana Yojana is exempt from GST.
- A citizen investing under this scheme cannot claim a deduction under Section 80C of the Income Tax Act.
Free Look Period for Pradhanmantri Vaya Vandana Yojana
If you’re not happy with the terms of your Pradhan Mantri Vaya Vandana Yojana policy, you can return it within 15 days from the issuance date. This short timeframe gives policyholders a chance to reconsider. The refund process varies for offline and online purchases.
For offline buys, the refund is handled within 15 days from the purchase date, and for online purchases, there’s a slightly longer period of 30 days for returns and refunds. Remember, when returning the policy, you need to provide a reason.
Upon returning the policy, you’ll get a refund of the purchase price, but deductions will be made for stamp duty and the deposited pension amount. This policy return option adds an extra layer of flexibility, allowing individuals the opportunity to review and reconsider their decision within the specified timeframe.
Pradhan Mantri Vaya Vandana Yojana Minimum and Maximum Pension Amount
|Mode of Pension
Vaya Vandana Yojana Minimum and Maximum Purchase Price
|Mode of Pension
|Minimum Purchase Price
|Maximum Purchase Price
Pradhan Mantri Vaya Vandana Yojana Objectives
The main aim of the Pradhan Mantri Vaya Vandana Yojana is to provide seniors in India with a pension, ensuring financial security in their retirement. This pension is generated by paying interest on the investments made by these individuals.
The scheme’s key focus is to empower senior citizens, encouraging self-reliance and minimizing their reliance on others during their old age.
By delivering a steady pension income, the Pradhan Mantri Vaya Vandana Yojana plays a crucial role in fostering financial independence among seniors. This not only secures a dignified livelihood for the elderly but also contributes to their overall well-being.
The scheme underscores the government’s commitment to enhancing the financial resilience and welfare of India’s senior population, representing a significant stride in addressing the specific needs of this demographic.
Interest Rates of PMVVY Scheme
|Fixed seed rate
Pradhan Mantri Vaya Vandana Yojana Payment
The Pradhan Mantri Vaya Vandana Yojana makes it easy for participants by offering flexible payment options to match different preferences and financial capabilities. Whether you prefer monthly, quarterly, half-yearly, or annual payments, the scheme provides a versatile structure that suits your needs.
Contributing is hassle-free through either the National Electronic Funds Transfer (NEFT) or the Aadhaar-enabled payment system.
These secure and user-friendly payment methods simplify the process for participants, aligning perfectly with the government’s dedication to digital financial transactions. This not only adds convenience for contributors but also enhances the efficiency in managing the scheme.
With a variety of payment choices and modern transaction methods, the Pradhan Mantri Vaya Vandana Yojana shines as an accessible and inclusive pension scheme, designed for the ease of use for senior citizens.
Options for taking pension
- There is an option to take it on an annual basis, you can choose any option you want.
- The pension will be paid either through NEFT or through Aadhaar enabled payment system.
Advantages of Pradhan Mantri Vaya Vandana Yojana 2023 for Maturity
- In addition to the deposited sum, the pension will be paid if the policyholder lives for the full ten-year term.
- In the event that the pensioner passes away, the deposit amount will be given back to the nominee within ten years after the policy’s expiration.
- The money deposited will be returned if the pensioner takes their own life.
A few key points about the PM Vaya Vandana Yojana
- Past the age of sixty, senior residents in the nation get pensions through the Pradhan Mantri Vaya Vandana Yojana. The beneficiary must pay the premium in order to receive this pension.
- This scheme has a ten-year policy duration.
- The Pradhan Mantri Vaya Vandana Yojana will pay the premium amount according to the pension mechanism.
- Under this arrangement, the pensioner can make contributions on a monthly, quarterly, half-yearly, or annual basis.
- The pension’s purchase price is given to the beneficiary’s lawful heir in the event of their death.
- The Pradhan Mantri Vaya Vandana Yojana does not require a medical check for purchase, and under certain conditions, early withdrawal is permitted.
- The beneficiary receives 9% of the purchase price if he leaves the program early.
- In addition, the recipient is eligible for a loan three years after acquiring this scheme.
- It is possible to get 75% of the loan purchase price with this plan.
Features of Pradhan Mantri Vaya Vandana Yojana
- The Pradhan Mantri Vaya Vandana Yojana was introduced specifically for senior individuals above the age of sixty.
- A ten-year guaranteed pension is given to the beneficiary under this arrangement.
- The Life Insurance Corporation of India is the company running this program.
- Interest income is available to you under the Pradhan Mantri Vaya Vandana Yojana at a rate of 7.40% annually.
- You can purchase this plan offline or online.
- This program was originally scheduled to terminate on March 31, 2020, however it has since been extended to March 2023.
- Pension payments under this plan are made on a monthly, quarterly, half-yearly, and annual basis.
- The purchase price and the remaining pension amount will be returned following the conclusion of the ten-year period.
- This policy also allows for a loan of up to 75% of the purchase price.
- Only once the policy’s three-year term has passed may one take advantage of this lending option.
- Under this arrangement, you can also withdraw up to 98% of the purchase price in case of urgency.
- Should the ten-year period end