By Okbima 10 Jan 2024 257

Pradhan Mantri Vaya Vandana Yojana Scheme (PMVVY)


Pradhan Mantri Vaya Vandana Yojana Scheme (PMVVY) is a pension scheme for senior citizens (60 years and above) introduced by the Government of India. The scheme aims to provide financial security and a regular income source to the elderly by ensuring a guaranteed pension at a fixed interest rate for 10 years. 


What is the Pradhan Mantri Vaya Vandana Yojana Scheme?

The Pradhan Mantri Vaya Vandana Yojana Scheme is a pension scheme launched by the Indian government to provide financial security to senior citizens. It is available to individuals aged 60 years and above and offers a guaranteed return on their investment. The scheme provides a regular pension income for 10 years, with the option of monthly, quarterly, half-yearly, or yearly payouts. 


Pradhan Mantri Vaya Vandana Yojana Interest Rate 2024

The interest rate of the Pradhan Mantri Vaya Vandana Yojana Scheme in 2024 is 7.40% per annum.


Minimum Investment Amount

Rs. 1.50 lakhs

Maximum Investment Amount

Rs. 15 lakhs


Minimum age of 60


8% interest on the monthly plan, 8.3% interest on the yearly plan


Benefits of Pradhan Mantri Vaya Vandana Yojana Scheme

The Pradhan Mantri Vaya Vandana Yojana scheme offers several benefits to senior citizens in India such as higher returns, death, and income tax benefits.

  1. Guaranteed Pension: The scheme provides a guaranteed pension income for 10 years, offering financial security during the post-retirement phase.

  2. High Return: PMVVY offers an attractive interest rate of 7.40% per annum, ensuring a stable and competitive return on the investment made by senior citizens.

  3. Payout Frequency Options: Policyholders can choose the frequency of pension payouts, whether monthly, quarterly, half-yearly, or yearly, according to their preferences and financial needs.

  4. Death Benefit: In the unfortunate event of the policyholder's demise during the policy term, the purchase price is returned to the nominee as a death benefit.

  5. Surrender Value: The scheme allows for premature exit in case of critical illness of the policyholder or the spouse. In such cases, a surrender value is payable.

  6. Income Tax Benefits: The pension received under PMVVY is considered taxable income, providing tax benefits to the policyholder

  7. Government Backing: PMVVY is a government-backed scheme, instilling confidence in the safety and reliability of the investment.


Pension Rates in Pradhan Mantri Vaya Vandana Yojana

Below are the pension rates associated with a Purchase Price of Rs. 1,000 across different pension payment modes:

• Monthly: Rs. 80 per year.

• Quarterly: Rs. 80.50 per year.

• Half-yearly: Rs. 81.30 per year.

• Yearly: Rs. 83 per year.


Is PMVVY Interest Taxable?

Yes, the interest earned under the Pradhan Mantri Vaya Vandana Yojana Scheme is taxable. The interest earned is taxed at your applicable income tax slab rate.

• There is no tax deduction available under Section 80C of the Income Tax Act for the interest earned on PMVVY.

• The tax is deducted at source (TDS) by LIC India and reflected in your Form 16.


Can Senior Citizens Invest in Both SCSS and PMVVY?

Yes, senior citizens can invest in both the Senior Citizen Savings Scheme (SCSS) and the Pradhan Mantri Vaya Vandana Yojana Scheme. Both schemes are specifically designed for senior citizens and offer guaranteed returns and regular income.





Minimum age

60 years

60 years (no maximum limit)

Investment tenure

1-5 years

10 years

Investment limit

Up to Rs. 30 lakhs

Up to Rs. 15 lakhs

Interest rate

8.2% per annum

7.4% per annum

Interest payment




How to Apply in Pradhan Mantri Vaya Vandana Yojana?

You can apply to the Pradhan Mantri Vaya Vandana Yojana Scheme with the offline method. Here are the easy steps to be followed.

Step 1: Visit the nearest LIC branch, and decide on the purchase price or the amount of pension you want to receive. The scheme provides both options - you can either opt for a lump sum purchase price or periodic pension payments

Step 2: Get the PMVVY application form from the LIC branch or download it from the official LIC website. Fill in the required details accurately. The form typically includes personal information, nominee details, pension options chosen, etc.

Step 3: Along with the filled application form, submit the necessary documents such as an Aadhar card, passport, or birth certificate and passport-size photographs.

Step 4: Make the payment for the chosen purchase price or pension amount. The payment can usually be made through various modes, such as cheques, demand drafts, or online payments.

Step 5: Once you have submitted the application and completed the payment, you should receive an acknowledgment receipt from LIC. This receipt serves as proof of your application submission.

Step 6: LIC will process your application, and upon approval, they will issue the policy document. The policy document will contain details of your PMVVY scheme, including the terms and conditions.


Who is Eligible for Pradhan Mantri Vaya Vandana Yojana?

Before applying for the Pradhan Mantri Vaya Vandana Yojana, you should check the eligibility criteria such as the age limit, nationality, and purchase price limit.

• Age Limit: Individuals aged 60 years and above are eligible to apply for the PMVVY scheme.

• Nationality: The scheme is available to Indian citizens as well as Non-Resident Indians (NRIs).

• Purchase Price Limit: There is a maximum limit on the purchase price of the PMVVY policy of Rs. 15 lakhs.


Documents Required to Apply for Pradhan Mantri Vaya Vandana Yojana

To apply for the Pradhan Mantri Vaya Vandana Yojana Scheme, individuals typically need to provide the following documents:

  1. Application Form: A filled and signed application form is required to initiate the enrollment process.

  2. Age Proof: Documents verifying the age of the applicant, such as a copy of the Aadhar card, passport, or birth certificate.

  3. Address Proof: A proof of address document, which can be an Aadhar card, passport, utility bill, or any other government-issued address proof.

  4. Bank Account Details: Information about the bank account where the pension will be credited, including the account number and the IFSC code

  5. Photograph: Passport-sized photographs of the applicant are usually required for identification purposes.

  6. PAN Card: The Permanent Account Number (PAN) card is often needed for tax-related purposes.


Which Scheme is Best for Senior Citizens?

Selecting the best scheme for senior citizens depends on their financial goals, risk tolerance, and investment horizon. 

• Senior Citizen Savings Scheme (SCSS): This is a government-backed savings scheme available for individuals aged 60 years and above. The maximum investment limit is Rs. 15 lakhs. The current interest rate is fixed quarterly and is typically higher than regular savings accounts

• Fixed Deposits (FDs): Senior citizens can opt for fixed deposits with banks or other financial institutions. Some banks offer higher interest rates on FDs for senior citizens.

• Post Office Monthly Income Scheme (POMIS): This is a low-risk savings option provided by the postal department, offering a fixed monthly income.

• National Pension System (NPS): NPS is a long-term retirement-focused investment option that allows senior citizens to invest. It provides the option of a systematic withdrawal plan post-retirement.


Read More: 

  1. ULIP vs Mutual Fund: Which Is Better In 2024?

  2. Sukanya Samriddhi Yojana - Interest Rate 2024

  3. Post Office FD Interest Rate 2024



In conclusion, the Pradhan Mantri Vaya Vandana Yojana Scheme is a beneficial scheme for senior citizens to secure their financial future and ensure a regular income during their retirement years. The scheme provides an attractive interest rate of 7.40% per annum and a guaranteed return on the investment amount. It not only offers financial security but also promotes the welfare of senior citizens and acknowledges their contribution to society. 


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