The Pradhan mantra Vaya vandana Yojna (PMVVY) is a senior citizen pension scheme. The LIC senior citizen scheme gives an assured returns of 8% per annum (year). The PMVVY pension scheme is implemented via the Life Insurance Corporation (LIC) of India and was announced in the Union Budgets of both 2017/18 and 2018/19.
In the budget of 2018/19, the government doubled the maximum limit to Rs. 15 lakh from Rs. 7.5 lakh per senior citizen. The PMVVY scheme can only be subscribed until March 2020 and senior citizens of who are 60 years old are eligible for subscription.
The government has not set any maximum age limit for people to subscribe the PMVVY scheme and the senior citizens scheme can only be availed until the 31st of March 2020.
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Under this scheme, a senior citizen will get a return of 8% per year which will be paid monthly for 10 years, however, the investor can opt for other options as well, i.e. Quarterly, Half Yearly, or Annual options.
Additionally, once the first 3 years of the policy get completed, the senior citizen can get a loan of up to 75% of the amount he/she has subscribed to. The interest of the loan will be adjusted/deducted from the installments and principal. It is said that the LIC PMVVY senior citizen scheme will be closed after 31st March 2020, however, according to a leading news agency, there are chances that the central government can extend the scheme for more years.