This scheme was started by the Government of India on 26 May 2020. If you want to invest in this scheme, then you can choose it anytime till March 31, 2023.
There is a fixed interest on your investment in PMVVY, on the basis of which your monthly pension is decided. It can be availed at the age of 60 years or after. Know other important information related to Prime Minister Vaya Vandana Yojana from LIC’s Chief Insurance Advisor Deepti Bhargava.
What is PMVVY Scheme?
Prime Minister Vaya Vandana Yojana is for the elderly people of India, whose age is 60 years or more. There is no age limit for investing in this scheme. A maximum investment of Rs 15 lakh can be made under PMVVY. The amount has to be deposited in lump sum.
If both husband and wife want to take benefit of the scheme, then both can deposit up to Rs.15 lakhs separately. On investing in this scheme, senior citizens get better interest than investing in other schemes. The pension is decided on the basis of your invested amount.
Money back after 10 years
The Prime Minister Vaya Vandana Yojana is for 10 years. Till then your money will be deposited in the scheme and you will continue to get pension. This amount will be returned with the final payment of pension after 10 years. The interest rate on the amount invested in this scheme will be 7.40 per cent per annum, which will be given as pension every month. If you want, you can surrender from this scheme anytime after the start of the scheme.
How much pension will you get
The minimum monthly pension in this scheme is Rs 1000 and the maximum is Rs 9250. If you invest Rs 15 lakh in this scheme, then the annual interest at the rate of 7.40 percent will be Rs 111,000. If it is divided into 12 parts, then a monthly pension of Rs 9250 will be made. The lump sum amount deposited under the scheme is tax free under section 80C of the Income Tax Act 1961. But the beneficiary will have to pay tax on the interest earned from the amount invested.
How to apply
To apply for the scheme, one has to apply by visiting the official website of LIC. You can also apply offline if you want.
The first installment of pension will be received after one month, three months, six months or one year from the date of your investment. It depends on which option you have opted for monthly, quarterly, half yearly or yearly pension. You will be given pension based on the amount you invest.