Pradhan Mantri Vaya Vandana Yojana – Eligibility and Benefits


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Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the government of India. The scheme is available with the LIC of India. Let us understand PMVVY policy in detail, in this post.

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an investment policy that was initiated with the aim of providing financial security to the elderly in the form of a regular pension. The pension scheme is available via online or offline mode and the maximum limit of the scheme is INR 15 lakh. Let us check the other Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2023-24 Scheme details here.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) Eligibility Criteria 

Below are the eligibility criteria that need to be meet for the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme:

  • Entry age (Minimum) – 60 years or higher
  • Entry age (Maximum) – No limit
  • Policy Duration – 10 years
  • Pension Earned (Minimum) – Available on a monthly, quarterly, half-yearly, and yearly basis as INR 1,000, 3,000, 6,000, and 12,000, respectively
  • Pension Earned (Maximum) – INR 10,000, 30,000, 60,000, and 1,20,000 which can be earned on a monthly, quarterly, half-yearly, and yearly basis respectively

The scheme considers the entire family including pensioners, their spouse and dependents etc. at the time of deciding the ceiling of maximum pension amount.

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5 Benefits of Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2023

Here are the benefits of the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme:

  1. Pension Payment – Once the plan matures and if the account holder survives the duration of the policy, the pension is paid in arrears. The pensioner can also choose the mode of pension payment under the policy.
  2. Death benefit – If the pensioner dies during the tenure of the policy, the purchase price of the scheme is paid back to the beneficiary or nominee.
  3. Maturity benefit – If the policyholder survives the tenure of the policy, he/she will receive the purchase price along with the total pension instalment.
  4. Loan facility – Loans up to 75% of the policy amount is available against the policy after completing 3 years of the plan. The loan interest is recovered by the insurer from the pension amount.
  5. Free-look period – The policy offers a free-look period of 15 days during which the policyholder can surrender it if the person is not happy with the policy terms. If you buy the plan online, you get an extended free-look period of 30 days. If surrendered, the insurer offers back the purchase price of the policy after deducting the stamp charges.

The PMVVY scheme offers a guaranteed return of 8% p.a to the pensioner for a 10-year policy duration.

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Pradhan Mantri Vaya Vandana Yojana (PMVVY) Purchase Price Payment 

The Vaya Vandana Yojana can be bought by paying a lump sum amount by the policyholder. The pensioner has the option to choose between pension amount or purchase price amount to receive.

Here are the minimum and maximum pension prices shown in the table below under different modes:

Pension Mode Minimum Purchase Price (INR) Maximum Purchase Price (INR)
Monthly 1,50,000 15,00,000
Quarterly 1,49,068 14,90,683
Half- Yearly 1,47,601 14,76,015
Yearly 1,44,578 14,45,783

Pension payment modes of Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme

The various Pension Payment Modes available under PM Vaya Vandana Yojana are monthly, quarterly, half-yearly, and annual modes in which payments are available. The payments can be done via NEFT or other Aadhaar enabled payment system.

Premature exit from the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme

The only condition under which premature exit from the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme is allowed is when the policyholder requires money for his/her treatment of a critical illness or his/her spouse. The Surrender Value paid is 98% of the Purchase Price.

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Pension Rates under the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme (Example)

Here is an example of the pension interest rates for INR 1,000 Purchase Price under various pension payment modes

  • Monthly pension rate – INR 80 p.a.
  • Quarterly pension rate – INR 80.50 p.a.
  • Half-yearly pension rate – INR 81.30 p.a.
  • Yearly pension rate – INR 83 p.a.

Frauds under the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme

Fraud under the scheme would mean an act of forgery committed by the policyholder or an agent to deceive the insurer. LIC or Life insurance corporation who is the insurer in this case can inform the policyholder if there is any fraud associated with the scheme within 3 years from the date of policy issuance.

The insurer can also inform if there is any fraud from the risk commencement date or the date of revival of the policy. If there is a rider added to the policy, the insurer can inform the insured of any fraud from the date of availing the rider.

The insurer also has to inform the insured or his/her nominees about such details in writing.

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To Sum UP

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Prime Minister pension scheme for senior citizens. It is an insurance policy-cum-pension plan which offers security to the senior citizens in the country.  The purchasing date of the LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY) (Plan No. 856) is valid till March 31, 2023.

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FAQs: Eligibility and Benefits of Pradhan Mantri Vaya Vandana Yojana

What documents are required to be submitted for investing in the PMVVY scheme?

Below are the papers needed:
Permanent Account Number (PAN) 
Address Proof - Passport or Aadhaar Card
Copy of the cheque leaf or the 
First page of bank passbook needs to be submitted, where the pension amount is credited

What is the procedure to apply for the PMVVY scheme?

The application form must be submitted along with the relevant documents. You can also apply in the scheme online.


Does the PMVVY scheme allow tax benefits?

Unlike other pension schemes, no tax benefits can be made for investments towards the PMVVY scheme.

What are the various modes via which one can invest in the PMVVY scheme?

Policyholders can invest in the PMVVY scheme online as well as offline. For investing online, you can visit the official website of LIC. For the offline method, you can visit a branch of the LIC office and submit the application form.

What is the Pradhan Mantri Vaya Vandana yojana launch date?

The Pradhan Mantri Vaya Vandana Yojana was launched by the Government of India on 4th May 2017.

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Mar 27, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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