Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a gift to all senior citizens by the PM of India. It provides a guaranteed pension for a period of 10 yrs to the senior citizens of India. It is by far one of the best and safest (government backed) schemes.


First let’s see the eligibility criteria for Pradhan Mantri Vaya Vandana Yojana

Only senior citizens are eligible i.e, who have completed 60 yrs of age. Only resident individuals can open the account under this scheme. 


How can you open an account under PMVVY?

For PMVVY, the sole responsibility of opening the account is given to LIC. So, if you want to opt for this scheme, you need to visit a nearby LIC office and not any bank or post office.


Minimum and Maximum deposit amount

The minimum amount to be deposited is Rs 1,62,162 and maximum is Rs 15 Lakhs

No extension is allowed. If you want to deposit further, you need to open a new account.

Loan facility is available.


Lock in period

The policy has a lock in period of 10 yrs



You can opt for any mode of pension – monthly, quarterly, half yearly and annually.

The ROI for current FY i.e, 2021-22 is as follows. The rate will vary slightly depending upon the mode of pension.

If monthly pension is opted, then ROI is 7.40%

For Quarterly it is 7.45%. For Half yearly 7.52% and for Yearly 7.66%

The rate of interest remains same as on the date of purchase for 10 yrs

Minimum pension amount is Rs1000 monthly and maximum is Rs 9250 monthly. 

So, For example, If you deposit Rs 1,62,162 and opt for a monthly pension then according to 7.4%, you will get a monthly pension of Rs 1000. 

Pension is provided immediately after the deposit.


Benefits of Pradhan Mantri Vaya Vandana Yojana

Guaranteed regular pension for 10 years

Different Modes are available- Monthly, yearly, half yearly, quarterly

No TDS is deducted by LIC. No GST is involved.

Pension is added to the income and taxed accordingly.

It is a safe investment option.


Premature withdrawal

No premature withdrawal is allowed except in case of critical illness. A penalty of 2% on the deposited amount needs to be paid.


To know more about it or invest, contact us.