{"id":55018,"date":"2025-07-14T16:32:13","date_gmt":"2025-07-14T11:02:13","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=55018"},"modified":"2025-07-15T16:34:46","modified_gmt":"2025-07-15T11:04:46","slug":"pradhan-mantri-vaya-vandana-yojana","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/pradhan-mantri-vaya-vandana-yojana\/","title":{"rendered":"Pradhan Mantri Vaya Vandana Yojana, Launch Date, Eligibility, Benefits"},"content":{"rendered":"

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government pension scheme launched on May 4, 2017 by the Department of Financial Services, Government of India, providing social security for senior citizens aged 60 years and above. The scheme is operated by the Life Insurance Corporation (LIC) of India which assures the financial stability of the elderly by providing them a pension with assured return of 7.4% per annum for a policy tenure of 10 years which is also exempted from Goods and Service Tax (GST).<\/span><\/p>\n

Pradhan Mantri Vaya Vandana Yojana Benefits<\/b><\/h2>\n
    \n
  1. Enrolling for this scheme provides the beneficiary a stable income ensuring financial stability.<\/span><\/li>\n
  2. The loan facility allows beneficiaries to borrow up to 75% of the policy’s value after three years. Any interest on the loan is deducted directly from your future pension payments, making repayment manageable.<\/span><\/li>\n
  3. Premature exit from the Pradhan Mantri Vaya Vandana Yojana is allowed in cases of critical or terminal illness (self or spouse).<\/span><\/li>\n
  4. If the policyholder survives, they receive the purchase price along with the final pension installment and in another case, the purchase price is refunded to the nominee.<\/span><\/li>\n<\/ol>\n

    Pradhan Mantri Vaya Vandana Yojana Eligibility Criteria<\/b><\/h2>\n
      \n
    1. Applicants must be 60 years or above to be eligible for the scheme.<\/span><\/li>\n
    2. Policy term duration is fixed at 10 years.<\/span><\/li>\n
    3. The Maximum investment can be \u20b915 lakh per senior citizen.<\/span><\/li>\n
    4. The beneficiary will receive the monthly pension between \u20b91,000 to \u20b910,000.<\/span><\/li>\n<\/ol>\n

      Pradhan Mantri Vaya Vandana Yojana VS Senior Citizens Savings Scheme<\/b><\/h2>\n

      Below in the table we have shared a comparative analysis between two different government schemes which provide financial support to the senior citizens: the Pradhan Mantri Vaya Vandana Yojana and Senior Citizens Savings Scheme.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
      Pradhan Mantri Vaya Vandana Yojana VS Senior Citizens Savings Scheme<\/b><\/td>\n<\/tr>\n
      Feature<\/b><\/td>\nPMVVY<\/b><\/td>\nSCSS<\/b><\/td>\n<\/tr>\n
      \n

      Eligibility<\/span><\/p>\n<\/td>\n

      		\n

      60 years and above<\/span><\/p>\n<\/td>\n

      		\n

      60 years and above (55 for VRS retirees)<\/span><\/p>\n<\/td>\n<\/tr>\n

      \n

      Policy Term<\/span><\/p>\n<\/td>\n

      		\n

      10 years<\/span><\/p>\n<\/td>\n

      		\n

      5 years (extendable by 3 years)<\/span><\/p>\n<\/td>\n<\/tr>\n

      \n

      Maximum Investment Limit<\/span><\/p>\n<\/td>\n

      		\n

      15 Lakhs<\/span><\/p>\n<\/td>\n

      		\n

      15 Lakhs<\/span><\/p>\n<\/td>\n<\/tr>\n

      \n

      Interest\/Pension Rate<\/span><\/p>\n<\/td>\n

      		\n

      Assured (7.40% reset annually)<\/span><\/p>\n<\/td>\n

      		\n

      Fixed (e.g., 8.3% for Q1 2018)<\/span><\/p>\n<\/td>\n<\/tr>\n

      \n

      Tax Benefits<\/span><\/p>\n<\/td>\n

      		\n

      GST Exempt<\/span><\/p>\n<\/td>\n

      		\n

      Exempt under Section 80C (interest taxable)<\/span><\/p>\n<\/td>\n<\/tr>\n

      \n

      Premature Withdrawal<\/span><\/p>\n<\/td>\n

      		\n

      Allowed for critical\/terminal illness<\/span><\/p>\n<\/td>\n

      		\n

      Allowed with penalty<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Role of Government in Pradhan Mantri Vaya Vandana Yojana<\/b><\/h2>\n
        \n
      1. The government\u2019s liability is capped and only covers the difference between the market return generated by LIC and the assured rate of return. For the year 2020-21, this assured rate of return was set at 7.4%. This means that if the market return is lower than 7.4%, the government will cover the shortfall, ensuring the senior citizens receive their guaranteed return.<\/span><\/li>\n
      2. The pension under PMVVY is calculated based on this assured rate of return (7.4%), which is fixed for a given period (e.g., the year 2020-21).<\/span><\/li>\n
      3. The scheme ensures that elderly persons aged 60 years and above do not suffer from unpredictable market conditions that could potentially lower their interest income.\u00a0<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

        Pradhan Mantri Vaya Vandana Yojana provides \u20b97.4% annual pension for 10 years to citizens aged 60+, backed by LIC, ensuring stable retirement income.<\/p>\n","protected":false},"author":8,"featured_media":55083,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[1545],"class_list":{"0":"post-55018","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-studies","8":"tag-pradhan-mantri-vaya-vandana-yojana","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/55018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=55018"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/55018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/55083"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=55018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=55018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=55018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}