Pradhan Mantri Vaya Vandana Yojana Scheme Extended
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme introduced by the Government of India. It is exclusively for senior citizens above 60 years from 4th May 2017.
Excellent news for many who need to get a pension in old age. Because initially, the date was from 4th May 2017 to 31st March 2020. But the Union government has prolonged the Prime Minister’s Vayana Vandana Yojana Scheme up to 31st March 2023.
Prime Minister Vaya Vandana Yojana-PMVVY, a pension scheme launched by the central government in 2017 for the aged who need to get a pension in old age.
The Prime Minister’s Vayana Vandana Yojana Scheme has a better rate of interest than the present financial savings schemes. The central authorities have introduced 7.4 percent interest for the financial yr 2020-21. Previously this interest would have been even increased. However, it decreased the rate of interest. The central authorities decide the interest yearly.
The scheme is managed by the Life Insurance Company of India-LIC, an insurance coverage firm of the Government of India. This scheme could be taken online or offline. Aadhaar number is necessary for this policy.
Benefits of the PMVVY scheme
Following are the key benefits under the Pradhan Mantri Vaya Vandana Yojana (PMVVY):
The scheme gives initially an assured rate of return of 7.40 % each year.
Annual reset of the assured rate of interest with effect from April 1st of the financial year according to a revised rate of returns of Senior Citizens Saving Scheme (SCSS) up to a ceiling of 7.75% with a contemporary appraisal of the scheme on breach of this threshold at any level.
Pension is payable on the finish of every interval, through the coverage time period of 10 years, as per the frequency of month-to-month/ quarterly/ half-yearly/ yearly as chosen by the pensioner on the time of purchase.
The scheme is exempted from Goods Service Tax (GST).
On survival of the pensioner to the end of the coverage time period of 10 years, Purchase worth together with closing pension installment shall be payable.
Loan up to 75% of Purchase Worth shall be allowed after Three policy years (to fulfill the liquidity wants). Loan interest shall be recovered from the pension installments and loan to be recovered from declare proceeds.
The scheme additionally permits for the premature exit for the treatment of any important/ terminal sickness of self or partner. On such a premature exit, 98% of the Purchase Worth shall be refunded.
On the death of the pensioner through the coverage time period of 10 years, the Purchase Worth shall be paid to the beneficiary.
The ceiling of most pension is for a family as a whole, the family will comprise of pensioner, his/her spouse, and dependants.
The shortfall owing to the distinction between the interest assured and the precise interest earned and the bills regarding administration shall be subsidized by the Authorities of India and reimbursed to the Corporation.
Eligibility Circumstances and Different Restrictions
Minimal Entry Age: 60 years (accomplished)
Maximum Entry Age: No limit
Policy Time period: 10 years
Funding restrict: Rs 15 lakh per senior citizen
Minimum Pension: Rs. 1,000/- monthly
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year.
Maximum Pension: Rs. 12,000/- monthly
Rs. 30,000/- per quarter
Rs. 60,000/- per half-year
Rs. 1,20,000/- per yr.
The Scheme could be bought offline in addition to online by means of Life Insurance Company (LIC) of India which has been given the only privilege to function this Scheme. To purchase online, go to licindia
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