Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a retirement cum pension scheme for senior citizens. PMVVY was first announced in Budget 2017 and launched on May 4, 2017. The scheme was open till March 31, 2020. The good news is PMVVY has now been extended to March 31, 2023 albeit with lower interest rates.
There are no specific eligibility criteria as such for PMVVY scheme except that the subscriber must be a senior citizen Minimum age for investment is 60 years. There is no Maximum age for entry, It gives return of 7.40% compounded monthly. Earlier this rate was 8%. You can choose to receive pension monthly, quarterly, half yearly or annually.
Pradhan Mantri Vaya Vandana Yojana maturity period is 10 years. At the end of maturity period the investment amount. would be returned. The pension payment shall be through ECS/NEFT only, On death of the policy holder, the premium is returned back to the nominee.
PMVVY applicant must be an Indian citizen. There is no maximum entry age for PMVVY scheme. Also, the applicant must be ready to avail the policy term of ten years. The minimum purchase price is Rs 1.5 lakh, and it offers a monthly pension of Rs 1,000. The maximum purchase price is Rs 15 lakh, and it offers a monthly pension of Rs 10,000. PMVVY is a very beneficial scheme for senior citizens.