Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY provides senior citizens assured returns for 10 years, along with death cover, loan facility, and a maximum investment limit of Rs. 15 lakh.
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3 mins read
03-June-2025

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme designed to provide senior citizens with a reliable source of income. Managed by the Life Insurance Corporation (LIC), it plays a vital role in post-retirement financial planning.

Launched on May 4th, 2017, and initially set to end on March 31st, 2020, the government has recently extended the PMVVY scheme for three more years, making it available until March 31st, 2023.

The PMVVY provides a valuable security net. Remember, it's wise to explore different investment options for retirement. There are life insurance plans that come with retirement plans, giving an opportunity to grow your money while you stay protected.

What is Pradhan Mantri Vaya Vandana Yojana (PMVVY)?

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme designed to provide senior citizens with a stable and guaranteed income after retirement. The Pradhan Mantri Vaya Vandana Yojana is implemented through LIC of India.

Under the Pradhan Mantri Vaya Vandana Yojana, eligible investors receive assured returns with options for monthly, quarterly, half-yearly, or yearly pension payouts, ensuring financial security and peace of mind during old age.

Benefits of PMVVY yojana

Here are some key benefits of the PMVVY:

  1. Rate of Return: The PMVVY scheme offers an assured return of 7% to 9% per annum for a 10-year term. The interest rate is adjusted annually to align with the Senior Citizens' Savings Scheme (SCSS).
  2. Maturity Benefit: At the end of the 10-year term, the entire purchase price, along with the final pension payment, is returned to the policyholder.
  3. Pension Payment: Pension payments are made periodically, as chosen by the policyholder (monthly, quarterly, half-yearly, or annually) throughout the 10-year term.
  4. Death Benefit: In the event of the policyholder's death during the policy term, the beneficiary receives the full purchase price.
  5. Loan Facility: After three years, policyholders can avail a loan of up to 75% of the purchase price. Interest is charged on the loan amount, which is deducted from future pension payments.
  6. Surrender Value: Under exceptional circumstances, such as critical illness, the policyholder can surrender the policy. A surrender value of 98% of the purchase price is payable.
  7. Free Look Period: If dissatisfied with the PMVVY scheme, policyholders have 15 days (30 days for online purchases) to return the policy for a full refund, minus any stamp duty and pension payments.
  8. Suicide Clause: In the unfortunate event of suicide, the full purchase price is returned to the nominee.

The maximum and minimum pension provided under the PMVVY

Pension frequency

Minimum pension

Maximum pension

Monthly

Rs. 1,000

Rs. 9,250

Quarterly

Rs. 3,000

Rs. 27,750

Half-Yearly

Rs. 6,000

Rs. 55,500

Annually

Rs. 12,000

Rs. 1,11,000

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

Here are the two ways to subscribe to the PMVVY scheme:

Online Procedure

  1. Visit the official LIC website.
  2. Navigate to the ‘Buy Online Policies’ section.
  3. Select the ‘Pradhan Mantri Vaya Vandana Yojana’ option.
  4. Click on the ‘Click to Buy Online’ button.
  5. Provide your contact details and proceed.
  6. Complete the online application form.
  7. Upload the required documents.
  8. Submit the application to complete the PMVVY online registration process.

Offline Procedure

  1. Obtain a PMVVY application form from any LIC branch. (A sample form is available here.)
  2. Fill out the form accurately.
  3. Submit the completed form along with the necessary documents to the LIC branch.
  4. After document verification, an LIC agent will initiate the policy.

Maximum and minimum purchase and pension price

This table summarises the pension payouts offered under the Pradhan Mantri Vaya Vandana Yojana scheme based on the investment amount and chosen payment frequency.

Mode of Pension Payment

Minimum Purchase Price (Investment in Rs.)

Minimum Pension (in Rs.)

Maximum Purchase Price (Investment in Rs.)

Maximum Pension (in Rs.)

Monthly

1,62,162

1,000

15,00,000

9,250

Quarterly

1,61,074

3,000

14,89,933

27,750

Half-Yearly

1,59,574

6,000

14,76,064

55,500

Yearly

1,56,658

12,000

14,49,086

1,11,000

 

Important points

  • Investment amount determines the pension payout.
  • Higher investment leads to a higher monthly pension.
  • Choose the payout frequency that best suits your financial needs

Taxability provisions of PMVVY scheme

  • Investment: Contributions made to PMVVY are not eligible for a tax deduction under Section 80C of the Income Tax Act.
  • Returns: The interest earned on PMVVY investments is taxable as per the applicable income tax bracket.
  • Tax Deduction at Source (TDS): TDS applies to the pension received from PMVVY.
  • GST: PMVVY investments are exempt from Goods and Services Tax (GST).

How to check PMVVY policy details

Policyholders can access their PMVVY policy details through the Umang App:

  1. Navigate to the PMVVY section within the Umang App
  2. Locate the "Policy Basic Details" section and click "Open"
  3. Choose the preferred login method: MPIN or OTP
  4. Enter your mobile number and the chosen login credential (MPIN/OTP)
  5. Under "General Services," select "Policy Basic Details"
  6. Provide your policy number and mobile number, then click "View Details"
  7. Your policy information will be displayed

Eligibility criteria for PMVVY

To be eligible for the PMVVY scheme, you must:

  • Age: Be 60 years or older.
  • Citizenship: Be an Indian citizen.

Policy Term:

  • The policy term for PMVVY is 10 years.

Pension Options:

You can choose from the following pension options:

Minimum Pension:

  • ₹1,000 per month
  • ₹3,000 per quarter
  • ₹6,000 per half-year
  • ₹12,000 per year

Maximum Pension:

  • ₹9,250 per month
  • ₹27,750 per quarter
  • ₹55,500 per half-year
  • ₹1,11,000 per year

Maximum Purchase Price:

The maximum purchase price for the PMVVY scheme is ₹15 lakh.

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

Examples of pension rates offered by the PMVVY scheme

The pension rates offered under the Pradhan Mantri Vaya Vandana Yojana (PMVVY) are structured to provide senior citizens with predictable and steady income. These rates are fixed by the Government of India at the time of purchase and remain unchanged throughout the policy term, ensuring long-term financial stability.

Under PMVVY, the pension rate broadly translates to an assured annual return of around 7.4%, payable as a pension rather than as market-linked gains. Investors can choose how frequently they want to receive their pension—monthly, quarterly, half-yearly, or yearly—based on their regular income needs. For example, a higher purchase price results in a proportionately higher pension amount, making it suitable for retirees seeking dependable cash flow.

The scheme is managed and serviced by Life Insurance Corporation of India, which adds an extra layer of trust and security. Overall, PMVVY pension rates are designed to prioritise income certainty, capital protection, and peace of mind for senior citizens.

Contact details for inquiries regarding the PMVVY policy

  • Phone: 022-67819281 or 022-67819290 (Monday to Friday, 10:00 AM to 5:30 PM IST)
  • Email: onlinedmc@licindia.com

Please note: These contact details are specific to PMVVY policy inquiries.

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Investment considerations

The PMVVY scheme offers a guaranteed pension option for eligible senior citizens. It can be a valuable tool for retirement planning. However, a significant initial investment is required to participate.

Conclusion

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.

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Frequently asked questions

What is the investment limit in PMVVY?

The maximum investment limit in Pradhan Mantri Vaya Vandana Yojana (PMVVY) is Rs. 15 lakh per individual. This means you can invest up to Rs. 15 lakh, but a couple cannot combine their limits for a joint investment.

Is PM Vaya Vandana Yojana taxable income?

Yes, the interest earned on your PMVVY investment is taxable according to your income tax slab. There's no tax exemption on this income. However, if the total interest you earn in a financial year is less than Rs. 50,000, no tax is deducted at source (TDS) is applied.

Can husband and wife both invest in PMVVY?

Yes, both husband and wife can invest in PM Vaya Vandana Yojana (PMVVY) individually. Each person can invest up to the maximum limit of Rs. 15 lakh, potentially maximising their total returns.

Is PMVVY eligible for 80C deduction?

No, PM Vaya Vandana Yojana (PMVVY) does not qualify for a deduction under Section 80C of the Income Tax Act. This section covers tax-saving investments like PPF, ELSS mutual funds, and ULIPs.

What is the age limit for the PM Vaya Vandana scheme?

The PM Vaya Vandana Yojana (PMVVY) is only available for senior citizens in India. The minimum age limit for investment is 60 years old. There's no upper age limit for investing in this scheme.

Is premature withdrawal allowed in PMVVY?

Generally, PMVVY does not allow early withdrawal of your funds. However, exceptions exist for emergencies. You can withdraw prematurely if you or your spouse experience a critical illness or require hospitalisation. In such cases, a penalty will be applied to the withdrawn amount.

Can I invest Rs. 30 lakhs in PMVVY?

No, you cannot invest Rs. 30 lakhs in PMVVY. The maximum investment limit for PMVVY is Rs. 15 lakhs.

Is TDS deducted in PMVVY?

No, Tax Deducted at Source (TDS) is not deducted on the pension amount received under PMVVY. However, the interest earned is taxable under your income tax slab.

Is LIC Vaya Vandana Yojana taxable?

PMVVY is not a tax-saving scheme. The pension received is considered income and taxed according to your income tax bracket. There's no tax benefit on the investment amount either.

What is the lock-in period for PM Vaya Vandana Yojana?

PMVVY has a lock-in period of 10 years. You cannot withdraw your investment amount during this period. However, after three years, you can avail a loan up to 75% of the purchase price

What is the interest rate of Pradhan Mantri Vaya Vandana Yojana?

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) offers an interest rate of 7.40% per annum, payable monthly for the current financial year. The rate is subject to periodic revision by the government.

Is PMVVY tax-free?

No, the income received from PMVVY is not tax-free. The pension amount is fully taxable as per the individual's applicable tax slab, though the investment in the scheme does not qualify for tax deductions under Section 80C.

Is it safe to invest in PMVVY?

Yes, PMVVY is considered a safe investment as it is backed by the Government of India. It offers guaranteed returns, making it a secure option for senior citizens seeking steady post-retirement income.

What is the PMVVY scheme?

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme offered by the Life Insurance Corporation of India (LIC) specifically designed for senior citizens. It provides a guaranteed return and a regular income stream, making it a popular choice for post-retirement financial planning.

What is the disadvantage of PMVVY?

One significant drawback of PMVVY for senior citizens is the 2% deduction on premature withdrawal from the scheme. However, this can encourage productive aging, as beneficiaries may use their returns and experience to explore new opportunities and ventures.

Is TDS deducted on PMVVY?

Yes, the interest earned on your PMVVY investment is taxable. If the annual interest exceeds Rs. 50,000, TDS will be deducted at source.

Can I apply for PMVVY online?

Yes, you can apply for PMVVY both online through the LIC website and offline at a LIC branch.

How do I register for PMVVY online?

You can register for PMVVY online by visiting the LIC website, navigating to the 'Buy Online Policies' section, and selecting the PMVVY option. Follow the on-screen instructions to complete the application process.

Who is eligible for PMVVY?

The PMVVY scheme does not have strict eligibility criteria apart from the subscriber being a senior citizen, meaning aged 60 years or above. The applicant must be an Indian citizen. There is no upper age limit to enroll in the scheme.

Is the PMVVY interest rate fixed for 10 years?

Yes, the interest rate agreed upon at the time of purchasing the policy remains fixed for the entire 10-year term. For policies bought during the financial year 2022-23, the assured interest rate is 7.40% per annum, payable monthly (which is equivalent to 7.66% per annum), guaranteed throughout the policy duration.

What are the benefits of LIC’s PMVVY?

PMVVY offers a regular pension payout for 10 years, providing financial stability to policyholders. Key benefits include a guaranteed pension, attractive returns, and flexible payout options, all designed to ensure senior citizens enjoy financial security in their retirement years.

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