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Mantri Vaya Vandana Yojana for senior citizens
July 22 , 2017
2710 days
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The Union Finance Ministry has launched Pradhan Mantri VayaVandanaYojana (PMVVY), a pension scheme exclusively for senior citizens aged 60 years and above.
Under this scheme, senior citizens will get a guaranteed interest of 8% for 10 years depending upon the investment made by them.
Features of PMVVY
• This PMVVY scheme will be available from May 4, 2017 to May 3, 2018.
• Life Insurance Corporation of India (LIC) has been given the sole privilege to operate the scheme.
• It can be purchased offline as well as online through LIC.
• It is exempted from goods and services (GST) tax.
• It will offer senior citizens more avenues to earn steady regular income at a time of falling interest rates.
• On survival of the pensioner to the end of the policy term of 10 years, the purchase price of the scheme along with the final pension instalment will be payable.
• The scheme also offers loan up to 75% of the purchase price after 3 policy years (to meet the liquidity needs).
• Loan interest will be recovered from the pension instalments and loan will be recovered from claim proceeds.
• The scheme allows for premature exit for the treatment of any critical terminal illness of self or spouse.
• On such premature exit, 98% of the purchase price would be refunded.
• On death of the pensioner during the policy term of 10 years, the purchase price should be paid to the beneficiary.
• The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
• The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
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