What is PMVVY? All you need to know about Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme available for senior citizens. The scheme, which envisages an assured rate of return of 8% annually, is being implemented through Life Insurance Corporation of India (LIC). The scheme was announced in Union Budgets of 2017-18 and 2018-19.

In the Budget 2018-19, the maximum limit under PMVVY was doubled to Rs 15 lakh per senior citizen. The scheme is available for subscription till March 2020. The PMVVY or Pradhan Mantri Vaya Vandana Yojana is a pension scheme for those aged 60 years or more. There is no maximum age for entry. This government scheme is currently open and those interested can invest in it till 31 March 2020.

The scheme provides for an assured return of 8% percent per annum payable monthly (equivalent to 8.3% per annum) for 10 years. However, the subscriber can opt for monthly/quarterly/ half-yearly or yearly payment of the pension.

Also, after the completion of 3 policy years, the subscriber can take a loan up to 75% of the amount of subscription so as to meet his liquidity needs. Interest will be deducted/ adjusted from installments and the principal from claim proceeds.

It is likely that LIC PMVVY Scheme will close after March 31 2020. There might also be that the Centre extends it for more years, said Financial Express. So, senior citizens who want to invest in this scheme have time till March 31, i.e., that is the date till when the scheme is open for subscription.

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