Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens which has been presented by the Government of India. The scheme was launched officially on 21st July 2017 by Finance Minister of India Arun Jaitley, although it has been available for purchase since its soft launch on 4th May 2017.
The scheme, which will apply to the senior citizens who are 60 years and above, means to deliver an ensured 8% interest rate for 10 years. If financial experts are to be believed, the pension scheme would provide more opportunities for senior citizens to generate a steady flow of income.
The move assumes enormous significance in the face of quickly falling interested rates. And what’s more the scheme is out of the purview of Goods and Services Tax (GST).
Features for senior citizen pension of Pradhan Mantri Vaya Vandana Yojana
- There is no maximum age of entry in the scheme for senior citizens.
- It gives a guaranteed rate of return of 8% to 8.30% per annum.
Maturityadvantage of the return of purchase price is given in this scheme.
- The scheme allows premature exit and 98% of the purchase price is paid back.
- The scheme can be purchased by paying a single amount sum ranging from INR 1.5 lakhs to maximum INR 7.5 lakhs for
monthto month benefits.
- Pension payment is made through NEFT or Aadhar card linked payment system.