In this pandemic situation, The Indian government is trying to help all the nation’s people. In this pandemic situation, the GDP of India is decreasing. In the first half quarter of the year, almost 23% of the decrease in GDP is noted. To improve the GDP and reestablish the economy of India, the Indian government is launching many schemes that will help the citizen of India.
The Indian government has launched the Atamn Nirbar Bharat Abhiyan to help the Micro Small and Medium Enterprises. This Abhiyan will help the manufacturing industry by providing temporary loans to small businesses. To provide financial help, the government wants to reestablish the second pillar of the economy than the manufacturing sector.
However, the Indian government was also launched for the improvement of the Agriculture sector. It is very admirable to see that the government is providing some financial help to every sector of the economy. However, the government is doing good for the senior citizens’ of India.
About Pradhan Mantri Vaya Vandana Yojana:
The full name of the PMVVY scheme is Pradhan Mantri Vaya Vandana Yojana. This is a government scheme which is launched by the Indian government on 4th May 2017. This scheme is established to help the aged people of the nation. This scheme will help a senior citizen of the country by providing 8% of interest monthly, quarterly, half-yearly, and yearly. In this article, I will give you all the information about the Pradhan Mantri Vaya Vandana Yojana scheme.
The scheme is applicable for the senior citizen whose age is above 60 years. This scheme was available from 4th May 2017 to 31st March 2020. But due to this pandemic situation, the government has extended the timeline of the scheme. Now, this scheme will available till 31st March 2020.
Benefits of Pradhan Mantri Vaya Vandana Yojana:
This scheme is majorly beneficial for senior citizens of India. There many benefits to this scheme. The government will provide high interest to the people who are above 60 age. This will help a senior citizen who is not able to do work and earn money. They can invest their money in this scheme and get high interest on their investment. Because of high interest, a senior citizen can survive in this fast world.
Here, I will give the list of benefits that a person can have:
- This scheme will give about a 7.40% return per annum for the year 2020-21. The interest rate can reset every year.
- If any citizen selects a yearly interest, then the annual interest will provide on 1st April in the new financial year. In the first financial year, the annual return will receive at 7.75% of the interest rate.
- The interest will be payable to the pensioner at the end of the year/ quarter/ half-year/ monthly as selected by the pensioner.
- The investment that is invested by the pensioner is exempted from GST (Goods and Service Tax). This means that the tax does not apply to the significant investment that is invested by the pensioner.
- The policy term is 10 years of this scheme. This means that the pension on a high-interest rate is given to the pensioner until 10 years from the date of investment.
- At the end of the investment period, the purchase price, along with the last pension, will be returned to the pensioner.
- Loan up to 75% of the purchase price can be given to the person to meet the liquidity of money. That means the person can take a loan on this investment after 3 years of investment. The maximum amount of the loan can be 75% of the total investment.
- If an emergency of health occurs, then it is allowed to exit at the premature condition of the scheme. In that case, 98% of the purchase price of the scheme will be returned to the pensioner. The emergency includes critical or terminal illness of self or spouse.
- If the death of a pensioner will occur during the policy period, then the pension of the scheme will be given to the beneficiary.
Eligibility Conditions and Other Restrictions
Maximum Entry age for this scheme: 60 years (completed)
Policy Term: 10 years
Investment limit: Rs 15 lakh per senior citizen
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. 12,000/- per month
Rs. 30,000/- per quarter
Rs. 60,000/- per half-year
Rs. 1,20,000/- per year
Payment of Purchase Price
There is mainly two option available for the pension. You can get a pension monthly or yearly. YOu can choose whatever you want. There are various maximum and minimum limits for the purchase price according to the pension period. If you want a yearly pension from this scheme, then the minimum purchase price will be Rs.1,56,658/-.
The maximum purchase price for the annual pensioner is Rs.7,22,892/-. If you want a monthly pension from this scheme, then the minimum purchase price will be Rs.1,62,162/-. The maximum purchase price for the yearly pensioner is Rs.7,50,000/-.
Mode of pension payment
However, there are many modes available for the pension payment. This means that if you have invested money in this scheme, then you will get the pension on a high-interest rate. The pension will be deposited into the bank account of the pensioner.
So it is beneficial to the pension that they can cash their interest amount whenever they wanted to do so. The scheme has introduced the different ways of the pension that is delivered to the pensioner. The pensioner can choose any of the modes to get their assistance in a bank account.
The pensioner can get their interest after 1 year of investment date. If any pensioner wants the interest at half-year, then it is also allowed by the scheme makers. If the pensioner has the necessary pension after every 3 months, then it is also permitted to the pensioner. The pensioner can also choose the 1 month of payment of the assistance.
If any medical emergency occurs and the pensioner needs money from the scheme, then this facility is also available in this scheme. The pensioner can exit at the premature condition of the scheme. The emergency condition includes the treatment of the critical/terminal illness of the pensioner or spouse. The pensioner can get 98% of their purchase price return.