Pradhan Mantri Vaya Vandana Yojana completes Five Years

Context

The five years of the Pradhan Mantri Vaya Vandana Yojana are now complete.

About Pradhan Mantri Vaya Vandana Yojana

• Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched as a government pension scheme for senior citizens which is managed and operated by Life Insurance Corporation (LIC). 
• The scheme is exempted from GST. 
• The scheme provides an assured return of 8% p.a. payable monthly and is exempted from service tax/GST.
• The scheme offers loans up to 75% of the purchase price after 3 policy years.
• The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. 
• On such a premature exit, 98% of the Purchase Price shall be refunded.
• If the pensioner dies during the policy term of 10 years, the benefits of the scheme can be availed by the nominee or the beneficiary.
• The benefits of the scheme are overall applicable to the pensioner, his/her spouse and dependents.

Eligibility

• Any individual must fulfil the following criteria for being eligible under Pradhan Mantri Vaya Vandana Yojana:
• He/she should be 60 years or above to be eligible for the scheme.
• The policy term should be of 10 years.
• Investment limit should be Rs. 15 lakh per senior citizen.
• The minimum pension should be Rs. 1,000/- per month and should not be more than Rs. 10,000/- per month.