1. Home
  2. Banking
  3. Tax
  4. Forms
  5. ppf - ssy
  6. Sr. Citizen
  7. Widgets
  8. Misc.
  1. Home ➤ 
  2. Banking ➤ 
  3. You Are Here

Pradhan Mantri Vaya Vandana Yojana (Modified-2020)

Use PMVVY 2020 Calculator

Salient features PMVVY (Pradhan Mantri Vaya Vandana Yojana) 2020

The Government of India has introduced Pradhan Mantri Vaya Vandana Yojana (Modified-2020), with modified rate of pension under this plan and extended the period of sale of this plan for a further period of three years from Financial Year 2020-21 till 31st March, 2023. As per the terms and conditions under this plan, guaranteed rates of pension for policies sold during a year will be reviewed and decided at the beginning of each year by the Ministry of Finance, Government of India. For the first financial year i.e. upto 31st March 2021, the Scheme will provide an assured pension of 7.40% p.a. payable monthly.

LIC of India is solely authorised to operate this scheme.

This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to the website of LIC of India.

a. Pension Payment :

On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.

b. Death Benefit:

On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.

c. Maturity Benefit:

On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.

a) Minimum Entry Age 60 years (completed)
b) Maximum Entry Age No limit
c) Policy Term 10 years
d) Minimum Pension ₹ 1,000/- per month
₹ 3,000/- per quarter
₹ 6,000/-per half-year
₹ 12,000/- per year
e) Maximum Pension ₹ 9,250/-per month
₹ 27,750/-per quarter
₹ 55,500/-per half-year
₹ 1,11,000/-per year

Total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana allowed to a senior citizen shall not exceed ₹ 15 lakhs.

The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.

The minimum and maximum Purchase Price under different modes of pension will be as under:

Mode of Pension Minimum Purchase PriceMaximum Purchase Price
Yearly ₹ 1,56,658/- ₹ 14,49,086/-
Half-yearly ₹ 1,59,574/- ₹ 14,76,064/-
Quarterly ₹ 1,61,074/- ₹ 14,89,933/-
Monthly ₹ 1,62,162/- ₹ 15,00,000/-

The Purchase Price to be charged shall be rounded off to nearest rupee.

The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under this Government subsidised scheme requires unique Aadhaar number validation.

The first installment 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 i.e. yearly, half-yearly, quarterly or monthly respectively

The pension rates for ₹ 1000/- Purchase Price for different modes of pension payments are as below:

Yearly₹ 76.60 p.a.
Half-yearly₹ 75.20 p.a.
Quarterly₹ 74.50 p.a.
Monthly₹ 74.00 p.a.

The pension installment shall be rounded off to the nearest rupee. These rates are age independent.

The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of the Purchase Price.
Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.

The rate of interest to be charged for loan amount shall be determined at periodic intervals.

Statutory Taxes, if any, imposed on this plan by the Government of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of Tax (GST) paid shall not be considered for the calculation of benefits payable under the plan.

If a policyholder is not satisfied with the "Terms and Conditions" of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.

The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.

For more info / clarification please visit website of LIC of India.

Updated : Oct 5, 2020
You may like to View / Use / Download
Income Tax Calculator AY 2021-22 Income Tax Slabs / Rates AY 2021-22
Advance Tax Calculator AY 2021-22 Interest u/s 234A B C Calculator
TDS Calculator AY 2021-22 TDS Rates AY 2021-22
Tax Saving Calculator Post Office Small Saving Calculators
PPF Calculator 2020 SSY Calculator 2020
Challan 280 in fillable Excel and PDF TDS form 16 in Excel with Calculation formulas
PAN forms and Annexures in fillable PDF Post Office forms in Fillable PDF
SBI Lending Rates for Perquisite Valuation Ramayana Prashnvali