The Pradhan Mantri Vaya Vandana Yojana (PMVVY) was announced by the Government of India as a scheme targeted at individuals aged 60 years or above. The Pradhan Mantri Vaya Vandana Yojana scheme will be available between 4th May 2017 and 31st March 2020. The Unique Identification Number (UIN) of this plan is 512G311V01. There are a number of benefits to this scheme, some of them have been mentioned below:

  1. The scheme assures the investor a return of 8% payable monthly, which is 8.3% per annum. This payment will be made for 10 years.
  2. There is no Service Tax or GST applicable to this scheme.
  3. The investor can avail a loan of up to 75% of the purchase price of this scheme after 3 years of investing. The loan interest will be recovered from the pension installments and the principal will be recovered from the claim proceeds at its maturity.
  4. At the maturity of the scheme in 10 years, if the pensioner survives, they will receive the purchase price of the scheme along with the last monthly pension installment.
  5. The scheme allows for a premature exit for treatment of any clinical or terminal illness for the investor or their spouse. Upon premature exit from the scheme, the beneficiary will receive 98% of the purchase price.
  6. In case the pensioner dies during the 10 year scheme period, the Purchase Price of the scheme will be given to the beneficiary of the scheme.
  7. Any difference between the interest guaranteed and the actual interest earned and the administrative expenses of the scheme shall be reimbursed by the Government to the corporation.



Minimum Age: 60 years

Scheme Duration: 10 years

Investment Limit: Rs. 15 lakh per individual

Minimum Pension:

Rs. 1,000/- per month

Rs. 3,000/- per quarter

Rs. 6,000/- semi-annually

Rs. 12,000/- annually


Maximum Pension

Rs. 10,000/- per month

Rs. 30,000/- per quarter

Rs. 60,000/- semi-annually

Rs. 1,20,0000/- annually

The ceiling of maximum pension is per senior citizen i.e. the total amount of pension under all the policies under this plan, including policies taken under Pradhan Mantri Vaya Vandana Yojana, allowed to a senior citizen shall not exceed the maximum pension limit.


Purchase Price

The payment of a lump sum to invest in the scheme is called a Purchase Price. The applicant can choose between the desired pension amount or the purchase price. The Purchase Price differs according to the frequency of the pension. The various Purchase Prices have been mentioned in the table below:

Pension FrequencyMinimum Purchase PriceMaximum Purchase Price



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 paid shall not be considered for the calculation of benefits payable under the plan.


Presently, the Pradhan Mantri Vaya Vandana Yojana is only available through the Life Insurance Corporation (LIC) of India.