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    Pradhan Mantri Vaya Vandana Yojana (PMVVY)

    • 5 min read
    • Last Modified Date: November 8, 2023
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    In a country like India, where a significant portion of the population is aging rapidly, financial security during retirement is a growing concern. 

    The Indian government has taken steps to address this issue through various schemes and initiatives. One such scheme is the Pradhan Mantri Vaya Vandana Yojana or PMVVY. In this comprehensive guide, we will delve into the details of PMVVY, understanding eligibility, benefits, application process, and much more.

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    PMVVY or Pradhan Mantri Vaya Vandana Yojana

    Pradhan Mantri Vaya Vandana Yojana or PMVVY is a government-guaranteed pension scheme for senior citizens in India. This scheme is aimed at providing them with a regular and stable source of income during their retirement years. 

    PMVVY is primarily offered by the LIC or Life Insurance Corporation of India and is available for purchase both offline and online.

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    Key Features of Pradhan Mantri Vaya Vandana Yojana 

    • Guaranteed Pension Payments

    One of the most attractive features of PMVVY is the promise of guaranteed pension payments. Policyholders receive fixed pension payouts at yearly, half-yearly, quarterly, or monthly intervals, depending on their choice.

    • Return Rate

    The PMVVY scheme ensures a fixed 8% annual return to the pensioner throughout the ten-year policy term.

    • Interest Rate

    PMVVY offers a monthly interest rate of up to 7.40%, surpassing the interest rates typically offered by traditional bank savings accounts.

    • Pension Amount Calculation

    The amount of pension under PMVVY depends on the purchase price, pension payment mode, and the age of the policyholder. The minimum and maximum purchase prices are set by the government and can change from time to time.

    • Policy Term

    PMVVY has a policy term of ten years, which means that policyholders will receive pension payments for a decade.

    • Pension Payment Modes

    Policyholders can choose from four different pension payment modes: yearly, half-yearly, quarterly, or monthly, based on their convenience and financial requirements.

    • Survivor Benefit

    In the regrettable event of the passing of the policyholder during the entire policy term, the scheme’s purchase price is refunded to the legal heir or nominee.

    • Surrender Value

    PMVVY allows policyholders to surrender the policy prematurely under certain circumstances. However, surrendering the policy comes with certain penalties and conditions.

    • Loan Facility

    Policyholders can get loans against the PMVVY policy after completing three years. The maximum loan amount that can be sanctioned is 75% of the purchase price.

    • Tax Benefits

    Investments in PMVVY offer tax benefits under IT Act Section 80C. Nonetheless, the received pension income is subject to taxation in accordance with the individual’s applicable income tax rate.

    Eligibility Criteria for Pradhan Mantri Vaya Vandana Yojana 

    To avail the PMVVY benefits, individuals must meet the following eligibility criteria

    Term of Policy

    Minimum age for entry

    Maximum age for entry

    Minimum pension

    Maximum Pension

    10 years

    60 years old

    No limit

    Rs. 1k each month

    Rs. 10k each month


    Rs. 3k every 3 months

    Rs. 30k every 3 months


    Rs. 6k every 6 months

    Rs. 60k every 6 months


    Rs. 12k annually

    Rs. 1.2 lacs annually

    • Age: The minimum entry age for PMVVY is 60 years, and there is no maximum limit for age. This means that even those above the age of 60 can invest in this scheme.
    • Nationality: Only Indian citizens are eligible for PMVVY. Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are not eligible to apply.
    • Medical Examination: No medical examination is required to purchase a PMVVY policy. This makes it accessible for elderly citizens without any hassle.

    Payment of Purchase Price for Various Periodic Payouts in Pradhan Mantri Vaya Vandana Yojana 

    Prospective participants in the PMVVY scheme can acquire it with yearly, half-yearly, quarterly, or monthly payouts by making a lump sum purchase price payment. When choosing PMVVY, a purchaser can choose between the amount of pension or purchase price.

    To gain a deeper understanding of this scheme, let’s examine the minimum and maximum purchase prices for different pension modes.

    • Minimum purchase prices for various pension model

    Pension Mode

    Minimum Purchase Price

    Equivalent Pension Sum



    1k each month



    3k every quarter



    6k per half-year



    12k every year

    • Maximum purchase prices for various pension model

    Pension Mode

    Maximum Purchase Price

    Equivalent Pension Sum


    15 lacs

    9,250 each month



    27,750 every quarter



    55,500 per half-year



    1,11,000 every year

    How to Apply for Pradhan Mantri Vaya Vandana Yojana 

    • Online Application

    Applying for PMVVY online is a convenient option, especially for tech-savvy senior citizens. Follow these steps to apply online:

    1. Visit the official LIC website.
    1. Look for the PMVVY scheme and click the ‘Apply Online’ option.
    1. Fill out the form with the necessary details.
    1. Upload scanned copies of the documents, like proof of age and nationality.
    1. Choose your preferred pension mode and purchase price.
    1. Make the premium payment online through various payment options.
    1. Once the payment is successful, you will get an acknowledgment and policy documents via email.
    • Offline Application
    1. For the PMVVY offline application, you can visit your nearest LIC branch or approach an authorized agent. Below are the steps involved in the offline application process:
    1. Visit the LIC branch or authorized agent’s office.
    1. Request the application form of PMVVY
    1. Fill out the form with accurate personal and contact details.
    1. Submit the completed form plus the documents, including proof of age and nationality.
    1. Pay the amount of premium as per your chosen pension mode and purchase price.
    1. Receive a receipt for the premium payment and policy documents.

    Documents for Pradhan Mantri Vaya Vandana Yojana Application

    When applying for PMVVY, you must provide the following documents:

    • Proof of Age: Documents such as an Aadhar card, PAN card, passport, or birth certificate can be used to establish your age.
    • Proof of Nationality: Any valid document that proves your Indian citizenship, such as an Aadhar card or passport, can be submitted.
    • Address Proof: You may provide proof of residence, such as utility bill or Aadhar card.
    • Passport-sized Photograph: Recent passport-sized photographs are required for the application.

    Benefits of Pradhan Mantri Vaya Vandana Yojana 

    Pradhan Mantri Vaya Vandana Yojana offers several benefits for elderly citizens:

    • Guaranteed Income

    PMVVY provides a regular and guaranteed source of income, which helps senior citizens maintain their financial independence and meet their daily expenses.

    • Financial Security

    With the assurance of a fixed pension amount, policyholders can enjoy financial security during their retirement years, free from worries about market fluctuations.

    • Tax Benefits

    Investments in PMVVY are eligible for tax deductions per IT Act Section 80C, reducing the overall tax liability of the policyholder.

    • Flexibility in Payouts

    Policyholders have the flexibility to choose their preferred pension mode (yearly, half-yearly, quarterly, or monthly) based on their financial needs.

    • Death Benefit

    In case of the policyholder’s demise during the entire term of the policy, the purchase price is returned to the legal heir or nominee, providing financial support to the family.

    • Loan Facility

    PMVVY allows policyholders to avail loans against the policy after three years, helping them meet any unforeseen financial needs.

    Things to Consider Before Investing in Pradhan Mantri Vaya Vandana Yojana 

    Before you decide to invest in Pradhan Mantri Vaya Vandana Yojana, here are a few important factors to consider:

    • Lock-in Period

    PMVVY has a lock-in period of ten years. Ensure that you can commit to this timeframe before investing.

    • Tax Implications

    While investments in PMVVY offer tax deductions under Section 80C, the pension income received is taxable. Consider the tax implications based on your overall income and financial situation.

    • Surrender Penalties

    Surrendering the policy prematurely can result in penalties and loss of benefits. Understand the terms and conditions related to policy surrender.

    • Inflation Considerations

    While PMVVY provides a guaranteed income, it may not account for inflation. Plan your investments and retirement expenses accordingly.

    • Alternatives

    Explore other retirement investment options and compare them with PMVVY to determine which one aligns better with your financial goals.

    Bottom Line

    Pradhan Mantri Vaya Vandana Yojana or PMVVY is a valuable pension scheme designed to provide financial security and independence to elderly citizens during their retirement years. With guaranteed income, tax benefits, and flexibility in payout options, it offers a compelling investment avenue for those looking to secure their financial future. 

    However, you must carefully assess your financial goals and consult with a financial advisor before making any investment decisions. PMVVY is just one of the many options available, and the right choice depends on your unique circumstances and retirement objectives.

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    Frequently Asked Questions 

    Q1. Can NRIs invest in PMVVY?

    No, PMVVY is exclusively for Indian citizens. NRIs and PIOs are not eligible to invest in this scheme.

    Q2. Can I avail of a loan against my PMVVY policy immediately after purchasing it?

    No, policyholders can avail of a loan against the PMVVY policy only after completing three policy years.

    Q3. What is the minimum and maximum purchase price for PMVVY?

    The minimum purchase price for PMVVY is ₹1,56,658 for a monthly pension, ₹1,59,574 for a quarterly pension, ₹1,61,074 for a half-yearly pension, and ₹1,62,162 for a yearly pension. The maximum purchase price is not fixed and can change based on government notifications.

    Q4. Is there a medical examination required to apply for PMVVY?

    No, there is no medical examination required to apply for PMVVY.

    Q5. How is the pension amount calculated under PMVVY?

    The pension amount is calculated based on the purchase price, pension payment mode, and the age of the policyholder at the time of entry into the scheme.

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