Pradhan Mantri Vaya Vandana Yojana interest rate, calculator: Securing a regular monthly pension after retirement requires meticulous planning long before.
Senior citizens need the regular flow of income that not just caters to their daily needs but also helps in tackling the rising cost of medical expenses. In fact, it is often been said that an individual planning for retirement should save double the amount or consider double the expenses by the time he or she reaches the retirement stage of 60 or 65 years, considering the rising inflation rate, medical expenses in old age among other needs.
Keeping in mind all these factors, a careful mix of equity, insurance and government-backed investment schemes should be planned well in advance in your early age to ensure sound post-retirement financial planning.
Pradhan Mantri Vaya Vandana Yojana
The insurance policy-cum-pension scheme, Pradhan Mantri Vaya Vandana Yojana, backed by Life Insurance Corporation (LIC) is one example which ensures financial security for senior citizens and guaranteed pension post retirement.
The scheme was launched after the success and popularity of Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes, with an aim to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions.
Pradhan Mantri Vaya Vandana Yojana: How to apply and Last date
The guaranteed pension plan can be purchased offline as well as online from the official LIC website (www.licindia.in). The last date to purchase the policy is 31st March, 2023.
Pradhan Mantri Vaya Vandana Yojana interest rate
Pradhan Mantri Vaya Vandana Yojana provides an assured pension of 7.40 per cent per annum with monthly payout option. According to the LIC website, “For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023.”
Pradhan Mantri Vaya Vandana Yojana calculator
Total investment amount: Rs 15 lakh
Rate of interest: 7.4%
Monthly pension: Rs 9,250
Minimum Pension
Rs 1,000/- per month
Rs 3,000/- per quarter
Rs 6,000/-per half-year
Rs 12,000/- per year
Maximum Pension Rs 9,250/- per month
Rs 27,750/- per quarter
Rs 55,500/- per half-year
Rs 1,11,000/- per year
Pradhan Mantri Vaya Vandana Yojana benefits
Pension Payment: The policy holder will continue to receive pension during the policy term of 10 years at the end of each period as per mode chosen by the person – monthly, quarterly, half-yearly and yearly.
Death Benefit: The entire purchase amount is refunded to the nominee upon the death of the pensioner during the policy’s term.
Maturity Benefit: After the end of the policy term of 10 years, the purchase price along with final pension installment is paid to the pensioner.
Pradhan Mantri Vaya Vandana Yojana maximum and minimum investment
An individual planning to purchase the plan can do so by payment of a lump sum Purchase Price. The pensioner has an option to
choose either the amount of pension or the Purchase Price.
The minimum and maximum investment options ranges between Rs 1,62,162 to Rs 15 lakh. The different modes of pension are as:
| Mode of pension | Minimum Pension Amount | Maximum Pension Amount |
| Yearly | Rs 1,56,658 | Rs 14,49,086 |
| Half-yearly | Rs 1,59,574 | Rs 14,76,064 |
| Quarterly | Rs 161,074 | Rs 14,89,933 |
| Monthly | Rs 1,62,162 | Rs 15,00,000 |
Source: LIC
Pradhan Mantri Vaya Vandana Yojana Eligibility
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term: 10 years
Pradhan Mantri Vaya Vandana Yojana loan facility
A lending facility becomes available when three policy years have passed. The maximum loan amount is only 75 per cent of the total invested amount.
Pradhan Mantri Vaya Vandana Yojana: Mode of pension paymentThe modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under this Government subsidised scheme requires unique Aadhaar number validation.
The first installment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
Pradhan Mantri Vaya Vandana Yojana: Entire amount can be refunded if you are not satisfied with the scheme
If a policyholder is not satisfied with the terms and conditions of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.
The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
