The Pradhan Mantri Vaya Vandana Yojana or the PMVVY is a pension scheme launched by the Government of India (GoI) for senior citizens over 60 years of age and above. This scheme is available to the senior citizens of the nation from the 4th of May 2017 to the 31st of March 2020.
Benefits that come with the PMVVY
The scheme comes as a ray of hope to senior citizens who often seem to struggle with their pension. Here are some of the benefits that come with the scheme.
- The scheme provides an assured return of 8% p.a which would be payable monthly for 10 years.
- The pension is payable at the end of each period, during the policy term of 10 years. The frequency of monthly/quarterly/half-yearly/ yearly would be on the choice the pensioner makes at the time of purchase.
- The scheme is absolutely exempted from Service Tax / GST
- On the survival of the pensioner to the end of the policy term (which would be of 10 years), the purchase price along with the final pension installment shall be payable to the pensioner.
- Loans up to 75% of the Purchase price shall be allowed to the pensioner after 3 policy years in order to meet liquidity needs.
- On the death of the pensioner during the policy term of 10 years, the Purchase price shall be paid to the beneficiary.
- The ceiling of the maximum pension is for a family as a whole (the family will ideally comprise of pensioner, his/her spouse, and dependents).
The minimum entry age for this scheme is 60 years (Completed). The term of the policy would be 10 years. The investment limit would be ₹15 lakhs per senior citizen. The minimum pension would be ₹1000/- per month. ₹3000/- per quarter. ₹6000/- per half-year and ₹12,000/- per year.
The maximum pension that can be availed is ₹10,000/- a month, ₹30,000/- per quarter, ₹60,000/- per half-year and ₹1,20,000 per year.
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