अच्छा लगता है जब कोई आपका हित सोचता है
Pradhan Mantri Vaya Vandana Yojana is a Non-Linked, Non-Participating, Pension Scheme subsidized by the Government of India. It was introduced exclusively for senior citizens aged 60 years and above. The scheme was earlier effective from 4th May 2017 to 31st March 2020. With Pradhan Mantri Vaya Vandana Yojana (Modified-2020), the scheme is now extended for a further period of three years beyond 31st March 2020 i.e., up to 31st March 2023.
LIC of India operates this scheme through offline and online channels.
Every year, guaranteed rates of pension for policies sold during a year will be reviewed and decided at the beginning of each year by the Ministry of Finance, Government of India. For 31st March 2021, the Scheme will provide an assured pension of 7.40% p.a. payable monthly. This is equivalent to 7.66% per annum.
Eligibility Conditions and Other Restrictions
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term: 10 years
Investment limit: Rs 15 lakh/senior citizen
Minimum Pension:
- Rs. 1,000/- per month
- Rs. 3,000/- per quarter
- Rs. 6,000/- per half-year
- Rs.12, 000/- per year.
Maximum Pension:
- Rs. 9,250/- per month
- Rs. 27,750/- per quarter
- Rs. 55,500/- per half-year
- Rs. 1,11,000/- per year
Payment of Purchase Price
The Pradhan Mantri Vaya Vandana Yojana can be purchased by payment of a lump sum Purchase Price. The pensioner can choose either the pension amount or the Purchase Price. The minimum and maximum Purchase Price under different modes of pension can be deduced from the table below:
| Mode of Pension | Minimum Purchase Price | Maximum Purchase Price |
| Yearly | Rs. 1,56,658/- | Rs. 1,449,086/ |
| Monthly | Rs. 1,62,162/- | Rs. 15,00,000/- |
Mode of pension payment
Pension payments can be done monthly, quarterly, half-yearly and yearly. The pension payment will be made through NEFT or Aadhaar Enabled Payment System. The first instalment will be paid after 1 year, 6/ 3 /1 month from the purchasing date depending on whether the pension payment is done yearly, half-yearly, quarterly or monthly.
Surrender Value
The Pradhan Mantri Vaya Vandana Yojana allows premature exit under exceptional circumstances like the Pensioner requiring money for treatment of critical/terminal illness of self or spouse. In such case, the surrender value shall be payable at 98% of the Purchase Price.
Loan
The loan facility is available after the completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
The rate of interest charged for the loan amount will be determined at periodic intervals. For the loan sanctioned in Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly. Loan interest will be deducted from the pension amount payable under the yojana. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
Free Look period
If a policyholder is not satisfied with the “Terms and Conditions”, he/she has the option to return the policy to the LIC within 15 days if offline and 30 days if purchased online, from the date of receipt stating the reason for objections.
The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid if any.
Conclusion
The Pradhan Mantri Vaya Vandana scheme is exempted from GST and on pensioner death during the policy term, the Purchase Price will be paid to the beneficiary/ nominee.
The Pradhan Mantri Vaya Vandana Yojana extension is the right approach to enable the old age income security of Senior Citizens. But the fruitfulness of this extension will only be effective when the maximum percentage of older citizens are covered under its ambit before the Pradhan Mantri Vaya Vandana Yojana outlives its life.
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