This year, the budget has enhanced the investment limit in Pradhan Mantri Vaya Vandana Yojana, which is also known as PMVVY. Arun Jaitley, Finance Minister, announced the revised amount as Rs. 15 lakhs that was previously Rs. 7.5 lakhs. He even proposed to stretch the limit of PMVVY till March 2020.
The scheme of Pradhan Mantri Vaya Vandana Yojana was designed to offer benefits to the senior citizens with a guaranteed interest rate of 8%. The responsibility of the operation of the 8% interest proposed by the government was handed over to the Life Insurance Corporation or LIC.
LIC initiated the offer of the said scheme from May 2017. This particular scheme was scheduled to remain available for subscription for the next one year. However, the extension has been stretched till March 2020. As per the financial planners, with this scheme, the senior citizens will have a golden opportunity to enhance their steady income where the fixed deposits have drastically failed to offer an alluring rate of interest to the people of India.
The scheme can also be purchased both from online and offline via Life Insurance Corporation of India.
An assured return of 8% per annum was allotted to this scheme. The money will be returned to the citizens per month, which is equal to 8.30% per annum for 10 years down the line.
The payment mode can be selected by the pensioners as per their convenience. Right now, if the person chooses to invest Rs. 7.5 lakhs in PMVVY, he/she will receive Rs. 5000 per month as an interest.
After the term ends, the pensioners will be getting back the entire amount along with the installment of the final pension. The death of the policyholder during the time period of 10 years, will allow the nominee to fetch the purchased amount.