PMVVY Scheme

PMVVY Scheme 2020: Pradhan Mantri Vaya Vandana Yojana for Senior Citizens

What is Pradhan Mantri Vaya Vandana Yojana 2020?

Pradhan Mantri Vaya Vandana Yojana (PMVVY) came into effect in May 2017 that helps the senior citizens to get a long-income option in India. This PMVVY is a retirement cum pension scheme, where the senior citizens get a good pension monthly or quarterly or yearly. The frequency of payout depends on the requirements of senior citizens. One can consider this option as the best one when compared to other savings options like FD, etc. Here the purchasers invest money is known as the purchase price. Only LIC offers this scheme to the senior citizens, and not other banks or agencies.

Features of Pradhan Mantri Vaya Vandana Yojana (PMVVY)

  • The minimum age limit for this pmvvy scheme is 60 years and there is no limit for maximum entry age.
  • Senior citizens get the pension for a long term of 10 years.
  • Senior citizens have the right to choose the frequency of pension payment such as monthly, quarterly, or yearly.
  • One can get the minimum pension amount of Rs. 1,000/month, Rs. 3,000/quarter, Rs. 6,000/half-year, or Rs. 12,000/year.
  • One can get the maximum pension amount of Rs. 10,000/month, Rs. 30,000/quarter, Rs. 60,000/half-year, or Rs. 1.2 lakhs/year.
  • Now, the pmvvy interest rate is 7.4% p.a. changed from 8% p.a. It is easy for you to calculate the minimum and maximum investment amounts using this rate of interest and pension levels. Use a monthly compound interest to derive the amount.
  • The maximum investment limit is applicable for one senior citizen but not for the family. So, if you invest s. 15 lakhs, then your spouse can invest a maximum of Rs. 15 lakhs.
  • This pm vaya vandana Yojana scheme is free from GST.
  • Based on the monthly compound interest, one can get an effective return of 8.3% per year.
  • The pension amount is not based on the age of the applicant.
  • After 3 years, you can take a loan of 75% of your purchase price.

Eligibility Criteria and Other Conditions

  • The minimum entry age for this lic pmvvy scheme is 60 years, and there is no maximum entry age limit.
  • The applicant should be an Indian Senior Citizen.
  • The applicant should accept the policy term of ten years.
  • The pm vandana Yojana scheme offers the minimum purchase price as Rs. 1.5 lakhs for which the monthly pension amount is Rs. 1,000.
  • The maximum purchase price is Rs. 15 lakhs for which the monthly pension amount is Rs. 10,000.

Documents Required for PMVVY

To apply for this pmvvy lic scheme, the applicant should have the following documents.

  • Age Proof
  • Aadhar card
  • Address Proof
  • Passport size photograph of senior citizen
  • Documents showing the retirement proof of the applicant

Application Process of the PMVYY Scheme


As already said, one has to visit the nearby LIC office to purchase this scheme. Once you decide the purchase price or pension payout, you can fill the application form and submit it to the officer along with the needed documents mentioned above.


To purchase this scheme online, you need to follow the steps given below.

  • Step 1: Type the official website of LIC on the web browser.
  • Step 2: Under the tab ‘Buy Policy Online’, select the option “Pradhan Mantri Vaya Vandana Yojana”.
  • Step 3: Now, you can see a new tab coming with four options. So, click on the button no. 842 for selecting the ‘Buy Online’ option. Now, you will get a new page where you need to click the option ‘Click to Buy Online’.
  • Step 4: The next step is to create a new Access ID, where you need to give mandatory details like name, mobile number, date of birth, email ID, address, etc. You will get a 9 digit Access ID either through mail or SMS of your given mobile number.
  • Step 5: Now, provide this Access ID where it is asked, and click the ‘Proceed’ button.
  • Step 6: The last step is to select the required pension plan and fill your application form. Also, upload your scanned copies of documents, and click the ‘submit’ option. You will get an acknowledgment along with a policy number. Use this policy number to check your policy.

PMVVY Scheme Extension 2020

This pmvvy Yojana scheme was there till 31st March 2020. But now, this scheme gets approval from the cabinet to extend till 31st March 2023. This extension helps senior citizens to get good income security. Here the pensioner can exit from the scheme only if there is a medical illness of pensioner or spouse. But the premature exit penalty is there for a pensioner, and it is 2%. So, the pensioner will get the remaining purchase price of 98% in the pradhan mantri vandna yojna scheme.

Mode of pension payment

The frequency of this scheme follows four modes such as monthly, quarterly, half-yearly, and yearly. You will get the pension amount via NEFT or Aadhar Enabled Payment System. Based on the frequency of the pm vaya vandana scheme, the first pension amount will reach the applicant after a month, three months, six months, or a year from the purchase date of this scheme.

One can buy this scheme from LIC. One can purchase it online or offline. Visit the nearest LIC office, to purchase offline. To purchase pmvvy online, you can log on to website.

Pension Payout in PMVVY Scheme

The Pension Payout of pmvvy scheme details varies based on your purchase price. For a minimum purchase price of Rs. 1.5 lakhs, you will get the pension amount of Rs. 1,000/month, Rs. 3,000/quarter, Rs. 6,000/half-year, or Rs. 12,000/year. For a maximum purchase price of Rs. 15 lakhs, you will get the pension amount of Rs. 10,000/month, Rs. 30,000/quarter, Rs. 60,000/half-year, or Rs. 1.2 lakhs/year.

Mode of Pension

Minimum Purchase Price Minimum Pension Payout Maximum Purchase Price Maximum Pension Payout


1,50,000 1,000/month 15,00,000 10,000/month


1,49,068 3,000 every 3 months 14,90,684

30,000 every 3 months

Half-Yearly 1,47,601 6,000 every 6 months 14,76,014

60,000 every 6 months

Annually 1,44,578 12,000/year 14,45,784

1.2 lakhs/year

Should you invest in PMVVY Scheme?

The prime minister vaya vandana Yojana scheme has a lock-in period of 10 years, which is maximum than SCSS or RBI bonds. But the scheme allows for premature surrender in case of critical illness of the pensioner or spouse. Pradhan mantri yojana for senior citizen scheme is a good investment option if the pensioner requires regular income. Pensioners in this scheme earn a good interest that gets added to the income, but it is taxable at the end.

How to invest in PMVVY Scheme?

To invest in the lic vaya vandana scheme, visit the nearest LIC office, as it is the only institution that offers this government scheme to senior citizens. One can even invest online through logging onto the website.  After visiting the website, one has to fill the application form. One can check the pmvvy details completely, and then go for investing in this scheme. Read the minimum and maximum purchase prices and then, invest it according to your convenience.

Benefits of PMVYY

  • Retirement Financial Security via Pension Payment: Under PMVVY, individuals who are in this plan can choose the time to get a fixed amount after completing that period. But the maximum lock-in period is 10 years.
  • Assurance of Returns: Pradhan mantri vaya vandana scheme ensures that the investors in this scheme will get a good return at a rate of 8-8.30% p.a. The payment mode is as per the interest of the pensioner.
  • Periodic Payout Options: Individuals in this vaya vandana scheme can choose their payout mode as monthly or quarterly or half-yearly or annually. For instance, if the pensioner chooses the quarterly mode, he/she will get the first pension after 3 months from the date of purchase.
  • Maturity Benefit: Pradhan mantri vaya Vandana provides a good maturity benefit. An individual in this scheme will get a lump sum purchase price of the scheme at the last pension. It includes both the lump sum amount and the last pension payout. But an individual can enjoy this benefit only when the individual survives at the end of the scheme.
  • Death Benefit: In case of a pensioner’s death during the PMVYY scheme term, his/her spouse or another family member can get the entire purchase price only when they submit the required documents to the Government.
  • Surrender Value: In the event of a pensioner or spouse facing a critical illness, this scheme provides a premature exit benefit. So, the policyholder can get 98% of the purchase price while the remaining 2% is charged to be a penalty for a premature exit.
  • Free Lock-in Period: Sometimes, you purchase this policy, and you may find that you are not happy with the terms and conditions of the scheme. In such a situation, you are allowed to exit this scheme within 30 days from the date of online purchase. Coming to the offline purchase of this scheme, you are free to exit the scheme within 15 days from that date of offline purchase. But one has to submit the reason for returning this scheme.
  • Loan Facility: Once the individual completes 3 years in this policy, he/she can get the loan facility against this PMVVY investment. The maximum loan amount that a pensioner can get is 75% of the purchase price. One has to pay the interest and its due on the date of the pension payout.
  • Exclusion: This pension scheme comes with exclusion in case of policy purchase amount return. Based on this exclusion, the beneficiary can get the whole purchase amount, if the policyholder commits suicide.

Disadvantages of PMVVY

  • One can’t get the purchase price until the pensioner faces a serious illness.
  • Returns can be minimum or low for investors if the investors have the highest income tax bracket.
  • One has to invest the maximum investment as Rs. 15 lakhs, which is high.

Tax Benefit for Investment in PMVVY

Coming to the pradhan mantri vaya vandana yojana tax benefits, it is free from Goods and Services Tax (GST). But other than this there is no tax benefit in PMVVY. Here the pension income applies to taxes based on your marginal income tax rate. Tax will be there when you take the purchase price before the lock-in period. But there will be no tax charged on the purchase price when you take them after maturity period or at the event of the death of a pensioner. 

Difference Between SCSS and PMVVY?

Senior Citizen Savings Scheme (SCSS)

Pradhan Mantri Vaya Vandana Yojana Scheme (PMVVY)

In this scheme, one can make a maximum investment of Rs. 15 lakhs.

In this PMVVY scheme, an applicant can make a maximum investment of Rs. 15 lakhs.

The lock-in period in this scheme is 5 years.

Here the lock-in period is 10 years.

Here the pensioner can get the payout once in three months i.e., quarterly.

Here the pension payment frequency can be monthly or quarterly or half-yearly or annually. It depends on the interest of the pensioner.

Here the interest rate is 7.40%

Here the interest rate is 7.4%

After investing in this scheme, a pensioner can get the tax benefits of up to Rs. 1.5 lakhs under Section 80C.

In this scheme, there is no such benefit. But it is exempted from GST.

Here the pensioner can make a premature exit at any situation but, need to pay a penalty for it.

Here the pensioner can make a premature exit only if the pensioner’s health is critical or the pensioner spouse’s is facing illness.

FAQs on Pradhan Mantri Vaya Vandana Yojana

Q1: What is the maximum investment in an PMVVY?

Ans: A pensioner can invest a maximum amount of Rs. 15 lakhs in an PMVVY.

Q2: Whether premature exit is possible in an PMVVY?

Ans: Yes, one can make a premature exit in an PMVVY, but they should pay some penalty to the Government before exiting from the scheme.

Q3: What is the age limit to invest in PMVVY?

Ans: According to the PMVVY rules, an individual should attain the age of 60 years while opening the account or between the age group of 55-60 years of age. But the applicant should be retired personnel.

Q4: Whether one can open a Savings Scheme joint account?

Ans: Yes, a Savings Scheme joint account can be opened but you are allowed to open with your spouse only but not other family members.

Q5: Whether PMVVY apply for any income tax rebates or exemptions?

Ans: No, PMVVY doesn’t allow any income tax rebate but applies only to existing income tax provisions.

Q6: Is an PMVVY charge any fee for nomination?

Ans: No, there is no fee charged for nomination or even for cancellation of nomination.


The Bottom Line

PMVYY is a great investment scheme, and the senior citizens make use of this scheme effectively. This scheme is much helpful for those senior citizens, who need a regular pension. However, to buy this scheme, one should have a good amount in hand

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