Pradhan Mantri Vaya Vandana Yojana (PMVVY)


Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme exclusively for the senior citizens aged 60 years and above.


The scheme is launched by the Ministry of Finance.


The scheme aims to provide social security to senior citizens and provide an assured return on investment.


  • Assured return of 7% to 9% for 10 years.
  • Pension payment options of monthly, quarterly, half-yearly & yearly.
  • Minimum and maximum pension amounts ranging from Rs. 1,000 to Rs. 10,000 per month.
  • Maturity benefit – entire principal amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed.
  • Death benefit – the purchase price will be refunded to the legal heirs/nominees.
  • Loan benefit – a loan of up to 75% of the purchase price can be availed after three years.
  • Surrender value – 98% of the purchase price will be payable to the pensioner in exceptional cases such as when the pensioner requires money for the treatment of any critical/terminal illness of self or spouse.


  • The subscriber must be a senior citizen, i.e. 60 years and above.
  • The applicant must be an Indian citizen.
  • There is no maximum entry age for the PMVVY scheme.
  • The applicant must be ready to avail of the policy term of ten years.

Implementation strategy:

  • The scheme can be purchased by payment of a lump sum Purchase Price.
  • The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
  • The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment.
  • If a policyholder is not satisfied with the policy, he/she can return the policy to the LIC within 15 days from the policy receipt date stating the reason for objections.

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