PM Vaya Vandana Yojana {प्रधानमंत्री वय वंदना योजना}

Pradhan Mantri Vaya Vandana Yojana is an excellent offer for the senior citizens looking for security, safety, regular income, and sensible returns. The scheme was officially launched in 2018-19, but then, later on, it was extended until 31st March 2020, with the announcement that they were enhancing the budget to INR 15 lakhs per senior citizen. Only the LIC of India has been given the authority to manage this scheme. The scheme can be accessed online as well as offline. 

However, there are certain modifications in the new scheme now. They reduced the interest rate now to 7.4 percent, which was eight percent before. This scheme also has the requirement to reset the payable interest rate of each year. The safety and interest of this scheme is much better than any other options available in the market. The post office monthly income scheme or POMIS provides an interest rate of 6.6 percent. We are fixed deposits with five-year and 

High tenure offers the senior citizens from SBI with an interest rate of 6.5 percent.  

However, the PMVVY scheme has the guarantee from the government, so there is no credit risk. The tenure for this scheme is ten years, and it is allowed to do premature surrender if the investor or the spouse is suffering from any dangerous illness. If something like this happens, 98% of the purchases will be returned to the policyholders.

The suite of retirement schemes

The PMVVY scheme mostly aims at senior citizens. It is as good as the SCSS or the Senior Citizen Savings Scheme, and the taxable RBI bonds as these schemes have an interest option of 7.75 percent. These schemes can make a good income source for regular senior citizens seeking income. The interest rate of PMVVY is almost similar to the SCSS's as it is 7.4 percent per annum. Plus, there are bonds from RBI that give a 7.75 percent annual interest rate, which can be distributed half-yearly, or you can choose for a collective payment. However, under the PMVVY scheme, the pension is paid monthly, half-yearly, yearly, and quarterly. But under the SCSS scheme, you will be paid interest at the end of every quarter. You can now invest up to INR 15 lakhs.


  • If the Pensioner survives the whole policy tenure of ten years, then the pension will be paid in arrears at the end of each period chosen by the individual.
  • There is a death benefit, as well. If the pensioner dies during the ten years of the policy term, then the purchased amount will be paid back to the beneficiary.
  • A maturity benefit is also there if the individual survives the whole ten years of the tenure, then he or she will be given back the purchase price along with the final installment of pension.


  • Minimum Age: 60+ years
  • Maximum Age: No limit 
  • Policy Term: 10 years
  • Minimum Pension: Rs. 1,000/- per month, Rs. 3,000/- per quarter, Rs.6, 000/- per half-year, Rs.12, 000/- per year 

Under this scheme, the ceiling of the maximum pension amount per senior citizen is the total amount of the pension with UIN: 512G311V01 is allowed the senior citizen to exceed the maximum pension limit.

Mode of pension payment

The modes of payment of pension under this scheme are monthly, quarterly, half-yearly & yearly. The payment must be made through NEFT or Aadhar Enabled Payment System. The first installment of pension will be given after one year, six months, three months, or one month from the date of purchase. 

Surrender Value

There is provision for premature surrender under this scheme but only for exceptional cases such as requiring financial aid for the treatment of any critical illness of self or spouse. They will be given 98% of the purchase price.


You can also avail loan facilities but only after completion of three policy years. The maximum loan amount you can avail is 75% of the purchased price. The interest rate will be charged based on periodic intervals. If the loan is sanctioned till 30th April 2018, the applicable interest rate will be 10% p.a. Payable half-yearly for the whole period of the loan. The interest amount of the loan will be gained from the amount of payable pension under this scheme. 


If there will be any statutory tax or any constitutional tax of Authority of India will be imposed under this scheme, then it will as per the tax law, and it will be applicable from time to time. The tax amount will not be considered as one of the benefits under this scheme.

Free Look period

If anyone is not fully satisfied with the purchased policy, then he or she can return the system to within 15 days if purchased offline and 30 days if purchased along with the receipt of purchase and objections regarding the policy. The amount will be refunded within the free look period into the individual's bank account. 


There will be no exclusion on suicide, and the full purchase price will be paid.

Documents required

You need to submit these following documents-

  • Aadhar Card
  • Proof of Age
  • Proof of Residence
  • Passport size photos of the applicant
  • Relevant Document/Declaration to show the retired status of the applicant

Application Process for PM Vaya Vandana Yojana

Offline Process

  • Application forms are available in all the LIC branches
  • The applicant must fill the form
  • Attach all the required documents after self-attesting them
  • Submit the way, along with materials, to any LIC branch

Online Process for PM Vaya Vandana Yojana

01. Visit the LIC website.

02. Click on "Products".

03. Look for "Pension Plans" and proceed.

04. Fill the application form available under "Buy Policies".

05. Submit the form and the required documents for further process

Frequently Asked Questions

Q. What is Pradhan Mantri Vaya Vandana Yojana?

This scheme is for the senior citizens of India who are looking for sustainable income source after retirement.

Q. When was this scheme launched?

This was launched in 2018 which has been now extended till0 2020.

Q. Who launched this scheme?

This scheme is launched by the Government of India.

Q. Who is operating this scheme?

 The LIC of India has the only access to operate this scheme.

Q. What is the minimum age to avail this scheme?

The minimum age is sixty years.

Q. What is the maximum age?

There isn’t any maximum age needed to avail this scheme.

Q. What is the tenure of the policy?

The time period of this policy is ten years.

Q. Is there any loan facility available?

Yes, you can avail the loan facility after three years.

Q. Will there be any additional taxes?

Yes, there will be some statutory taxes or taxes imposed as per the guidelines of The Authority of India.

Q.  Where can I apply for it?

You can apply online on the LIC portal or offline in the LIC branches.