The Government of India has been doing its bit for the elderly and the older generation of India. So in the recent speech of the budget for the year 2019 and 2020, the concerned authorities have announced the Pradhan Mantri Vaya Vandana Yojana for the year 2019 and 2020. Under this article today, we will share with you all the details about the loan scheme which will be implemented for the elderly people of India. In this article, we have provided eligibility criteria, benefits, features and all the other procedures related to the scheme.
Pradhan Mantri Vaya Vandana Yojana
Under the Pradhan Mantri Vaya Vandana Yojana, insurance will be provided to the elderly people of India. Under the insurance, many benefits and incentives will also be availed for the older generation so that they can lead their life happily and without any trouble of financial burden. The implementation of this scheme will take place in the year 2020 and thus it will clarify all the financial burden that the older generation is going through.
Details Of The PMVVY Scheme
|Name||Pradhanmantri Vaya Vandana Yojana|
|Launched by||Central government|
|Launched in||All over India|
|Objective||Providing insurance facility to the elderly generation|
|Beneficiaries||Old people above the age of 60 years.|
In the latest updates on 20 May 2020, the cabinet has approved the extension of Pradhan Mantri Vaya Vandana Yojana (PMVVY) for a further period of 3 years i.e. 31 March 2023. This will ensure old age income security and welfare of Senior Citizens. The Yojana will provide an effective interest rate for the senior citizens on certain investments through Life Insurance Company (LIC)
Features Of The Scheme
Certain features of the Pradhan Mantri Vaya Vandana Yojana are given below:-
- Monthly, quarterly, half-yearly, and annual modes are the different modes of payment that are available in the scheme.
- The payment of pension will be done via Aadhaar Enabled Payment System or National Electronics Fund Transfer (NEFT).
- If there are any Statutory Taxes that have been imposed by the Indian Government or another constitutional tax Authority of India, they will be as per the tax laws and the tax rates that are applicable.
- For the calculation of benefits that are payable under the PMVVY scheme, the amount of tax that is paid will not be taken into account.
- Only for treatment of terminal or critical illness for the policyholder of his/her spouse, the premature exit from the policy is allowed. 98% of the Purchase Price must be paid as the Surrender Value.
Benefits Of The Pradhan Mantri Vaya Vandana Yojana
As mentioned above, there are many benefits of the Pradhan Mantri Vaya Vandana Yojana that will be implemented for the older generation of India. Some of the benefits are mentioned below:-
- The pensioner will receive an assured return of 8% p.a. for the policy in the duration of 10 years.
- In case the pensioner survives the duration of the policy, the pension will be paid in arrears.
- The pensioner has the right to choose the mode by which the pension must be made.
- The purchase price will be paid back to the beneficiary if the pensioner passes away during the policy tenure.
- If the pensioner survives the entire policy tenure, the purchase price will be paid along with the final pension installment.
- After completing 3 years of the policy, the pensioner can also avail loans against the policy.
- A maximum of 75% of the purchase price can be availed as a loan.
- The interest on the loan will be recovered from the pension payment that is being made.
- The policyholder can surrender the policy within 15 days if he/she is not happy with the terms of the policy.
- The free-look period is 30 days if the policy is bought online.
- The purchase price after the deduction of stamp charges will be refunded to the policyholder.
Eligibility Criteria Of The Scheme
To be eligible for the Pradhan Mantri Vaya Vandana Yojana for the year 2019 and 2020, you must follow the following eligibility criteria given below:-
- The applicant must be 60 years of age to apply for the scheme.
- There is no upper limit of age
- The tenure of the policy is 10 years.
- The minimum pension amount is, as such-
- Month- Rs.1,000
- Quarter- Rs.3,000
- Half-yearly- Rs.6,000
- Yearly- Rs.12,000
- The maximum pension amount is, as such-
- Month- Rs.10,000
- Quarter- Rs.30,000
- Half-yearly- Rs.60,000
- Yearly- Rs.120,000
PMVVY Required Documents
- Passport Size Photo
- Mobile Number
- Aadhar Card
- Pan Card
- Income Certificate
- Age Certificate
- Bank passbook Details
Purchase Price Of The Pradhan Mantri Vaya Vandana Yojana
To purchase the scheme you will have to pay the following prices in lump-sum amount-
|Pension mode||Minimum Purchase Price (Rs.)||Maximum Purchase Price (Rs.)|
Application Procedure Of Pradhan Mantri Vaya Vandana Yojana
To apply for the Pradhan Mantri Vaya Vandana Yojana, you must follow the simple steps given below:-
- First, you have to visit the official website of LIC India
- After you visit the homepage, click on the Pradhan Mantri Vaya Vandana Yojana link present there.
- Finally, you have to purchase the scheme as per your requirement.