Pradhan Mantri Vaya Vandana Yojana [8% Fixed Pension (Plan 842 LIC)]
The Pradhan Mantri Vaya Vandana Yojana has become one of the most important pension schemes available for seniors in India. This offers a special setup for pensions that can work for at least ten years. This system is available for people to apply for online through a simple form that is easy to work with.
The Pradhan Mantri Vaya Vandana Yojana works as a program for a number of people who are eligible to receive pensions. It entails special pension payments to help support one’s retirement. It is available for all sorts of seniors 60 and older although it is important to watch for the costs associated with it.
All Features Of Pradhan Mantri Vaya Vandana Yojana
Who Is Eligible?
The eligibility for getting into the scheme works with two standards in mind. First, there is the point about age. A person must be at least 60 years of age to get into the scheme. There are no limits as to what the maximum age of the person is. The only real requirement for age is that the person is still 60 or greater.
Next, the payments for the scheme have to be put into consideration. The person must also be ready to work on making general payments during the ten-year time span. The payments can be made in different intervals as listed earlier as the lump sum payment can be divided up during that time period.
What Are the Pension Totals?
The pensions can be up to Rs. 60,000 per year. That is, they can be Rs. 5,000 per month depending on the amount of money that was invested in the scheme. Meanwhile, they can be as low as Rs. 1,000 per month or Rs. 12,000 per year but that would be for those who deposit the bare minimum into the program in general.
Time Span of Scheme
The scheme will work for ten years. This period of time will entail the person getting pensions to receive payments during one of four time intervals based on the person’s preference. The time span is especially being used to make it easier for people to benefit and to get the interest they are looking for.
Rate of Interests
An 8 percent rate will be used for the scheme. This is designed to ensure that a person will receive regular payments with a significant profit over the course of ten years. A proper analysis is needed to ensure that one knows what the overall total interest in the effort should be.
Program is Available Under the Scheme
A person can get into the scheme through a lump sum payment. A person can choose to pay for the program on a yearly, half-yearly, quarterly or monthly basis. The total amount of money that will be spent for getting into the scheme will vary based on the size of the pension one will earn and the frequency of when someone is going to pay to get into the program.
Minimum Purchase Price
A proper purchase price must be spent in order to enter into the plan:
- The total value of the price can be adjusted based on the total return one wants to get out of the scheme. The applicant can choose a particular value to spend on entering the scheme based on one’s budget.
- Purchase prices will vary based on the frequency of payments that one could get. It costs more to get into a scheme when monthly payments are offered in the process.
- A lump sum payment must be processed at the start of the scheme. This is to help fund the overall scheme and to ensure that proper interest can build upon the money being sent.
The purchase price will go from Rs. 1,44,578 to Rs. 7,50,000 depending on the plan one gets into.
A loan can also be utilized later on as one moves forward in the program. A loan of up to 75 percent of the purchase price can be used after three years of getting into the scheme. The rate that will be charged will vary based on government standards. There is a potential that such a rate can be around 10 percent with that rate being payable half-yearly during the entire life of the loan. LIC of India will be responsible for operating this facility.
No GST will be used during the life of the scheme. That is, there is no risk for the money being earned during the program to be taxed. This ensures that the interest that comes from the pension program is being earned in a sensible manner and that it will be easy for one to get an appropriate profit off of the scheme in general.
Taxable or Not?
A pensioner cannot claim the income from the scheme for an income tax benefit. Also, the interest is given after the tax is deducted. The purchase price is also fully taxable so it should be easy for the transaction to be handled in an appropriate manner with regards to one’s funds.
A surrender value is offered in the event of a premature exit from the scheme. This would entail a payout of 98 percent of the purchase price of the scheme. This is for use in exceptional situations like the need to take care of a serious illness or other life-threatening expense that may come up.
The overall stature of the scheme is fixed. That is, the interest rate will stay consistent during the life of the scheme. This ensures that the market will not have any impact on what someone might earn. This is used to ensure that the scheme is easy to follow without being complicated to one’s finances.
How to Register In Pradhan Mantri Vaya Vandana Yojana
The application that the scheme uses is very simple and easy for people to follow. It entails the following critical steps for making it easier for a deposit to be made:
- Start by visiting the LIC India website at www.licindia.in. The site should have a listing of the different policies it has to offer under the Buy Policies Online menu. The PMVVY should be included on this listing.
- Click on the Buy Online option. This should then list a full application form that the user can enter one’s information on. The information to be offered should be clearly listed.
- Enter in details on one’s name, email, mobile number, date of birth, address and PIN code. A servicing unit and one’s residential status must be included at this point.
- An access ID should be sent out at this point. The ID is nine digits and will be sent through an SMS or email message. It is used to confirm one’s identity for further services.
- The access ID should then be entered into the right-hand side of the form. This allows the user to get into the more detailed part of the application process.
- The user must then list information on the particular efforts one will use for the scheme. This includes information on how much will be sent for the scheme and when payments are to be made. This is to determine how much can be given during the collection process after ten years.
- Information on how it will be paid should be included. This includes details on a bank account that may be used. Proper confirmation is needed based on the banking information links to a mobile number of other personal information.
- A beneficiary should also be listed. This includes not only the person who will get the money but also any other people who will take in the money in the event of the pensioner’s death.
- A policy number should be provided after the information is sent out. This number lists details on the particular policy that one holds and how it might be used.
Implementation and Last Date for Registration
The scheme is available since 4th May 2017 and the applications shall be received till 3rd May 2018. So you will have to make sure that you fill the registration forms within that period, provided you are eligible.
The Pradhan Mantri Vaya Vandana Yojana is expected to be one of the more popular pension schemes available around India. Those who are 60 years of age or older can benefit from the strong return that comes from it. The easy to handle application process also makes it a worthwhile investment option.
Bestowing some appeasement to senior citizens, the government has doubled the contribution limit to Rs 15 lakh under the PMVVY Pension Scheme and stretched out the subscription course, which was to end tomorrow by 2 years. The Pradhan Mantri Vaya Vandana Yojana is for the inhabitants aged 60 years or above. It was accessible for subscription from 4th May 2017 to 3rd May 2018. It has now been stretched to 31st March 2020.