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Pradhan Mantri Vaya Vandana Yojana:

According to the budget 2025-26, almost 32%  of total expenditure has been allocated to the government welfare scheme.  We have seen that over a decade, the government has been running various schemes for women's empowerment, social welfare, and sustainable development.  If you think deeply, you will realise that these schemes are categorically based on age, gender, and community. Recently, various state governments have started various women’s empowerment schemes like  Mukhyamantri Mazi  Ladki  Bahin Yojana, Mahila Samridhi Yojana, Ujjwala Yojana, etc. As we saw, there are various schemes for women. Also central government and various state governments run various schemes for older people, disabled people, etc. All these scheme has the purpose of improving their quality of life by addressing their social, health, and financial needs.

In our society, elder people have always special place. Because they have worked. They have worked hard for their families and society for many years of their lives. But after retirement, they need financial stability so that they can live with dignity and independence. To fulfil this need, the Government of India has launched the Pradhan Mantri Vaya Vandana Yojana.  

In today's blog, we will see what is the Pradhan Mantri Vaya Vandana Yojana. What are the features and benefits of the scheme? Who should apply?, how to apply? and all your doubts. So, read the complete blog and understand the scheme. After that, if you have any doubts, then drop your thoughts in the comment section.  I will always be there to solve your doubts. 

What is the  Pradhan Mantri Vaya Vandana Yojana? 

Pradhan Mantri Vaya Vandana Yojana is a scheme of the Government of India for senior citizens. The main objective of this scheme is to provide financial stability to persons above 60 years of age through a regular pension. This scheme is run by the Life Insurance Corporation (LIC) and backed by the Indian government.

For the financial year 2023-24, the government has set a guaranteed return of 7.4% per annum.

This scheme provides a guaranteed pension at an interest rate of 7.4% for 10 years. Senior citizens have the option of taking a monthly, quarterly or annual pension. This helps them reduce their financial dependence and lead a self-reliant life. This scheme is important for increasing the respect and active participation of senior citizens in society.

Features of Pradhan Mantri Vaya Vandana Yojana:

• Eligibility: Any Indian citizen of 60 years or above can be eligible for this scheme. Also, there is no upper age limit for this.

• Guaranteed Pension: 

For the financial year 2023-24, the government has set a guaranteed return of 7.4% annually. This return will be applicable for the next  10 years.  The government can revise the return for the new subscription phase. 

• Flexible Pension Options: Senior citizens have the facility to take a monthly, quarterly, half-yearly or annual pension.

• Purchase Price payment: 

To avail of the pension scheme, individuals must make a one-time lump sum payment. Depending on the chosen pension mode, the minimum and maximum purchase prices are listed below:

 Note: The purchase price will be rounded off to the nearest rupee at the time of payment.

• Operated by LIC: This scheme is operated by Life Insurance Corporation (LIC), which ensures reliability and safety.

• Premature Withdrawal: Investment can be withdrawn in case of a medical emergency, but some penalty may be levied.

• Death Benefit: In case of the death of the investor during the term of the scheme, the invested amount is returned to the nominee.

How to apply for PMVVY?

•  Indian citizens above 60 years of age can apply for this scheme.
•  Those who do not have retirement income or do not want to depend on their children can apply.
• Those who can invest Rs 1.5 lakh to Rs 15 lakh and want a pension with a government-guaranteed interest rate of 7.4%.
•  Those who want to live with financial independence and dignity.
•  Those who want monthly, quarterly or annual pension options, then this scheme will be best. 

How to apply for PMVVY?

1. Apply Online:

• Go to LIC Website: Visit the official website of LIC (www.licindia.in). 

• On the homepage, select the ‘Buy Online Policies and search for Pradhan Mantri Vaya Vandana Yojana.

• Fill the application form: Enter your name, phone number, email, investment amount (Rs. 1.5 lakh to Rs. 15 lakh) and pension option (monthly/quarterly/annually).

• Upload documents: Upload Aadhaar card, PAN card, address proof, age proof, bank details and photo.

• Make payment: Make an online payment (net banking/card). After a successful application, the policy documents will be received by email or post.
   

2. Offline application:

• Go to the LIC branch: Go to the nearest LIC branch and get the PMVVY application form (or download it from the LIC website).

• Fill the form: Enter personal details, investment amount and pension option.

• Attach documents: Attach copies of Aadhar card, PAN card, address proof, age proof, bank details and photo.

• Submit: Submit the form and documents to the LIC branch. Pay the investment amount by cheque/demand draft/cash.

• Get the policy: After verification, you will receive the policy documents.

• Required documents:
   

Aadhaar card, PAN card, Proof of address (Aadhar/Passport/Voter ID), Proof of age (Birth certificate/Aadhar), Bank account details (Passbook/Cancelled cheque), Passport size photo. Etc. 

Download the Finshak app for more information. 

https://play.google.com/store/apps/details?id=com.finshakapp.app&pli=1

Conclusion: 

The government started the scheme in 2017 to uplift the financial life of senior citizens. From the start of the PMVVY  scheme, it has been a favourite among the senior citizens due to its attractive returns and almost zero risk. If you or someone from your family has turned 60, then you should take advantage of this scheme.   We know that having a regular income, like a pension after retirement, makes life happy and stable. 

Dear readers, I have to share an important thought with you. Investing in the Pradhan Mantri Vaya Vandana Yojana (PMVVY) is one of the best options for individuals aged 60 and above. However, many of you may not have reached the age of 60 yet and might be wondering, Where should I invest then?

Well, don’t worry! If you’re not eligible for this scheme, we are here to guide you.

There are several mutual fund options available that can help you generate a regular income. Some of these funds offer features like a Systematic Withdrawal Plan (SWP), which allows you to withdraw a fixed amount at regular intervals, just like a pension scheme.

• Download the Finshak app for more information. 

https://play.google.com/store/apps/details?id=com.finshakapp.app&pli=1