Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Learn about Pradhan Mantri Vaya Vandana Yojana and how it can help you in retirement.
3 min

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme specifically designed for senior citizens to provide with a reliable source of income. Managed by the Life Insurance Corporation (LIC), this plan is essential for post-retirement financial planning.

Initially launched on May 4th, 2017, and set to conclude on March 31st, 2020, the government has recently prolonged the duration of the PMVVY scheme for an additional three years, extending its availability until March 31st, 2023.

The PMVVY provides a valuable security net. Remember, it's wise to explore different investment options for retirement. Fixed deposit (FD) offer guaranteed returns and flexible tenures, allowing you to tailor your investments alongside the PMVVY or other pension schemes.

Benefits of Pradhan Mantri Vaya Vandana Yojana

  • The Pradhan Mantri Vaya Vandana Yojana guarantees a regular payout for up to 10 years. You can choose the frequency of payments that best suits your needs.
  • The scheme starts with a guaranteed 7.40% annual interest rate for 2023-24. Each year, the rate will be adjusted, potentially aligning with the Senior Citizens Saving Scheme (SCSS).
  • The Pradhan Mantri Vaya Vandana Yojana offers flexible payout options. You can choose to receive your pension monthly, quarterly, half-yearly, or annually, based on your individual needs. Your first payment will arrive shortly after purchasing the plan, with the timing depending on your chosen payout frequency.
  • In case of a medical emergency, you can access 98% of your investment by exiting the policy early.
  • If you are not satisfied with the Pradhan Mantri Vaya Vandana Yojana after your purchase, you have a window to return it. For online purchases, this "free look" period is 30 days from the start of the policy. Offline purchases have a shorter 15-day window.
    The full purchase amount, after deducting any applicable stamp duty or released pension payment, will be refunded within the specified free lock-in period.
  • With the Pradhan Mantri Vaya Vandana Yojana, you have the option to take a loan against your investment after 3 years. You can borrow up to 75% of the amount you invested. Interest on the loan will be deducted from your regular pension payments. Interest is due on your pension payment date, and if you surrender the policy or it reaches maturity, any outstanding loan balance will be deducted from the final payout.

Eligibility criteria for PMVVY

  • Applicant must be a citizen of India.
  • The applicant should be at least 60 years of age (completed) while entering the PMVVY scheme.
  • There is no maximum age of entering into the policy.
  • The maximum purchase price for PMVVY should not go beyond Rs. 15 lakh

The maximum and minimum pension provided under the PMVVY

Pension frequency

Minimum pension

Maximum pension


Rs. 1,000

Rs. 9,250


Rs. 3,000

Rs. 27,750


Rs. 6,000

Rs. 55,500


Rs. 12,000

Rs. 1,11,000

How to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY)


Step 1: Visit the official website of the Life Insurance Corporation.
Step 2: Navigate to the 'Buy Policy Online' section and choose "Pradhan Mantri Vaya Vandana Yojana."
Step 3: Click on button no. 842 for 'Buy Online,' then select 'Click to Buy Online' on the new page.
Step 4: Create an Access ID by providing details like name, email, mobile number, date of birth, address, and servicing unit. You will receive the 9-digit Access ID via SMS or email.
Step 5: Enter the Access ID and click 'Proceed' to continue with the application.
Step 6: Select the pension plan that suits you best, fill out the application form, submit the required documents, and proceed with the payment. Upon successful submission, you will receive an acknowledgment and policy number.


To buy this scheme offline, visit your nearest or preferred LIC branch. Fill out the application form and submit it with the necessary documents and the chosen amount.

Documents required to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY)

  • Bank account details
  • Aadhaar card
  • PAN card
  • Address proof
  • Age proof
  • Passport size photo
  • Proof of retirement from employment

Fixed deposits are reliable investment option for senior citizens seeking steady income. Consider incorporating them into your retirement portfolio alongside schemes like PMVVY for diversification. Bajaj Finance offers one of the highest interest rates, up to 8.85% p.a., on their FD. Additionally, Bajaj Finance FDs are AAA rated, ensuring the highest level of safety.


The Pradhan Mantri Vaya Vandana Yojana (PMVVY) offers a compelling option for senior citizens seeking safe and reliable retirement income. With its guaranteed returns, flexible pay-out options, and government backing, PMVVY is a valuable tool for securing your financial future.


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.