PM Vaya Vandana Yojana: LIC Interest Rate, Details, and UPSC Facts
PM Vaya Vandana Yojana (PMVVY) was a government-subsidised pension scheme for senior citizens aged 60 and above, administered exclusively by LIC of India, offering a guaranteed return of 7.4% per annum with monthly, quarterly, half-yearly, or annual pension payout options on a maximum investment of ₹15 lakh. The scheme is closed for new subscriptions as of 31 March 2023. Existing policyholders continue to receive their pension until the 10-year policy term ends. This page covers the scheme's full details, LIC interest rate, UPSC-relevant facts, existing policyholder information, and the best current alternatives for senior citizen savings.
What is PM Vaya Vandana Yojana?
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme for senior citizens administered by the Life Insurance Corporation of India (LIC) under a subsidy arrangement with the Ministry of Finance. The scheme was originally launched in May 2017 for one year, extended in 2018, and significantly expanded in Budget 2020–21 by increasing the maximum investment limit from ₹7.5 lakh to ₹15 lakh and extending the subscription window to March 2023.
PMVVY operates as a non-linked, non-participating immediate annuity plan, the policyholder makes a lump sum purchase price payment and receives a fixed pension immediately, with a guaranteed return equivalent to 7.4% p.a. for plans under the 2020 revised scheme. The government bears the difference between the actual market return earned by LIC and the guaranteed return promised to the policyholder, this is the subsidy component. The scheme closed for new subscriptions on 31 March 2023. No extension has been announced. Existing policyholders continue their policies until the 10-year term expires.
Key Features of PM Vaya Vandana Yojana
| Feature | Detail |
|---|---|
| Guaranteed return | 7.4% per annum (effective, for monthly pension payout mode) |
| Pension payout modes | Monthly, quarterly, half-yearly, or annual |
| Minimum investment | ₹1,56,658 (for monthly pension of ₹1,000) |
| Maximum investment | ₹15,00,000 per senior citizen |
| Maximum monthly pension | ₹9,250/month per policyholder |
| Policy term | 10 years |
| Return of purchase price | On maturity (after 10 years) or on death of policyholder, full purchase price returned to nominee |
| Loan facility | Loan up to 75% of purchase price available after 3 policy years |
| Premature surrender | Allowed only on critical illness of self or spouse, 98% of purchase price returned |
| New subscriptions | Closed as of 31 March 2023 |
| Implementing body | Life Insurance Corporation of India (LIC) exclusively |
| Government subsidy | Difference between guaranteed 7.4% return and LIC's actual investment return, borne by Government of India |
PMVVY Pension Amount Table
| Purchase Price (₹) | Monthly Pension (₹) | Quarterly Pension (₹) | Annual Pension (₹) |
|---|---|---|---|
| ₹1,56,658 | ₹1,000 | ₹3,000 | ₹12,000 |
| ₹3,13,316 | ₹2,000 | ₹6,000 | ₹24,000 |
| ₹7,83,289 | ₹5,000 | ₹15,000 | ₹60,000 |
| ₹15,00,000 | ₹9,250 | ₹27,750 | ₹1,11,000 |
Pension amounts above are for the 2020–2023 subscription version of the scheme. Actual pension may vary marginally by LIC's calculation, verify with your LIC policy document.
Is PM Vaya Vandana Yojana Still Open?
No. PM Vaya Vandana Yojana closed for new subscriptions on 31 March 2023. The Government of India has not announced a renewal or extension of the scheme.
| Status | Detail |
|---|---|
| New subscriptions | Not available from 1 April 2023 |
| Existing policies | Continue to maturity (10 years from purchase date) |
| Last policies mature | By March 2033 (for policies purchased in March 2023) |
| Renewal announced | No |
Information for Existing PMVVY Policyholders
Pension Receipt
- Pension is credited directly to your bank account, monthly / quarterly / half-yearly / annual as per the mode chosen at purchase
- If pension credit stops, contact your nearest LIC branch or call LIC helpline: 022-68276827
Loan Against PMVVY Policy
- Loan available after 3 completed policy years
- Maximum loan: 75% of purchase price
- Visit your LIC branch with the PMVVY policy bond and identity proof
- Loan interest is recovered from pension instalments
Premature Surrender
- Allowed only on diagnosis of critical/terminal illness of self or spouse
- Surrender value: 98% of purchase price returned
- Submit medical certificate and surrender form at your LIC branch
Maturity (After 10 Years)
- Purchase price is returned in full along with the final pension instalment
- Contact your LIC branch 30 days before maturity to complete maturity claim paperwork
Death Claim
- Purchase price is returned to nominee
- Nominee submits death certificate, policy bond, and identity proof at LIC branch
LIC Helpline: 022-68276827 / 1800-4259-876 (toll-free) | LIC Online Services: licindia.in
PaisaOne does not manage PMVVY policies. All policy servicing must be done directly through LIC.
Eligibility (for Reference, Scheme Closed for New Policies)
| Criterion | Requirement |
|---|---|
| Age | 60 years and above (no upper age limit) |
| Citizenship | Indian resident |
| NRI eligibility | Not eligible |
| Maximum investment | ₹15 lakh per senior citizen (individual limit; joint not available) |
| Existing PMVVY policies | One policy per senior citizen was permitted within the ₹15 lakh cap |
Documents Required (for Existing Policyholders, Claims/Services)
| Document | Purpose |
|---|---|
| PMVVY policy bond / certificate | Policy identification |
| Aadhaar card | Identity verification |
| PAN card | For TDS and financial transactions |
| Bank passbook | For pension credit verification |
| Medical certificate | For premature surrender on critical illness |
| Death certificate + nominee's identity proof | For death claim |
How to Contact LIC for PMVVY Policy Services
- Visit your nearest LIC branch, find the branch nearest to you at licindia.in → Branch Locator
- Log in to LIC e-Services portal at licindia.in for policy status, pension schedule, and account statements
- Download the LIC Customer App for mobile-based policy management
- LIC helpline: 022-68276827 (8 AM – 8 PM, Monday to Saturday) or 1800-4259-876 (toll-free)
- Email grievances: customerzone_mumbai@licindia.com
- IRDAI grievance portal: igms.irda.gov.in (if LIC does not resolve within 15 days)
PM Vaya Vandana Yojana, UPSC Key Facts
| Parameter | Detail |
|---|---|
| Full name | Pradhan Mantri Vaya Vandana Yojana |
| Acronym | PMVVY |
| Launch | May 2017 (original); expanded in Budget 2020–21 |
| Administered by | Life Insurance Corporation of India (LIC) |
| Nodal ministry | Ministry of Finance |
| Type | Non-linked, non-participating immediate annuity plan, government-subsidised |
| Guaranteed return | 7.4% p.a. (2020–23 version); earlier versions: 8% (2017), 8.3% (2020) |
| Maximum investment | ₹15 lakh per senior citizen (revised upward from ₹7.5 lakh in Budget 2020) |
| Policy term | 10 years |
| Government subsidy | Difference between guaranteed return and LIC's actual market return |
| Companion schemes | Senior Citizens Savings Scheme (SCSS), Atal Pension Yojana, Pradhan Mantri Jan Arogya Yojana (for health) |
| Closed | 31 March 2023, no new subscriptions |
| Unique feature | Government bears investment risk; policyholder gets guaranteed pension regardless of market returns |
Current Alternatives for Senior Citizens (2025)
| Scheme / Product | Rate | Tenure | Key Feature |
|---|---|---|---|
| Senior Citizens Savings Scheme (SCSS) | 8.2% p.a. | 5 years (+3 extension) | Highest government savings rate; quarterly payout; post office + banks |
| Post Office Monthly Income Scheme (POMIS) | 7.4% p.a. | 5 years | Monthly payout; max ₹9 lakh (single) / ₹15 lakh (joint) |
| Senior Citizen FD (major banks) | 7.5%–8.5% p.a. | 1–10 years | Additional 0.25%–0.5% over regular FD; bank-specific |
| Pradhan Mantri Jan Arogya Yojana (70+ component) | Health cover | Ongoing | ₹5 lakh/year health cover for all citizens 70+, Ayushman Vay Vandana |
What is PM Vaya Vandana Yojana and who was it for? Pradhan Mantri Vaya Vandana Yojana (PMVVY) was a government-subsidised annuity pension scheme for Indian resident senior citizens aged 60 and above, administered exclusively by LIC of India. It offered a guaranteed return of 7.4% per annum on a lump sum investment of up to ₹15 lakh, with pension payable monthly, quarterly, half-yearly, or annually over a 10-year policy term. The scheme closed for new subscriptions on 31 March 2023.
What were the main benefits of PM Vaya Vandana Yojana? PMVVY guaranteed a fixed pension at a rate equivalent to 7.4% p.a. regardless of market conditions, the government bore any shortfall between this rate and LIC's actual returns. The maximum monthly pension was ₹9,250 on a ₹15 lakh investment. The full purchase price was returned on maturity after 10 years or to the nominee on death. A loan of up to 75% of the purchase price was available after 3 policy years.
Who was eligible for PM Vaya Vandana Yojana? Indian resident citizens aged 60 years and above were eligible. There was no upper age limit. NRIs were not eligible. Each senior citizen could invest a maximum of ₹15 lakh across all PMVVY policies. The scheme was available only through LIC of India, no other insurer or bank was authorised. New subscriptions closed on 31 March 2023; no new policies can be purchased.
How do existing PMVVY policyholders manage their policies? Existing policyholders receive pension directly in their bank account as per the mode chosen. For loan against the policy, premature surrender, or maturity claim, visit the nearest LIC branch with the policy bond and identity proof. Online policy status is available at licindia.in. LIC's helpline is 022-68276827 (8 AM–8 PM, Monday–Saturday). For unresolved complaints, approach IRDAI's IGMS grievance portal at igms.irda.gov.in.
