Pradhan Mantri Vaya Vandana Yojana – Read 12 Special Things

The Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme in which the interest will be paid at 8% and no GST, i.e. goods and services tax will be charged on it is going to be formally launched today. Arun Jaitley, the Finance Minister will launch the scheme. The special thing about the scheme is that the interest on savings will be 8%.

The Pradhan Mantri Vaya Vandana Yojana is a pension scheme launched for providing pensions to the senior citizens of 60 years or above.

12 Special Things About Pradhan Mantri Vaya Vandana Yojana –

  • Though the scheme is going to be formally launched today i.e. July 21, the scheme will be available from May 4, 2017 to May 3, 2018. And this is its limitation that it is for a limited time. So if you want to take advantage of it then try to get it as soon as possible.
  • This scheme ensures a fixed return of 8 percent per annum for monthly payment of 10 years (equivalent to 8.30 percent per annum effective).
  • With the purchase price of the scheme, the last installment of the pension will be paid on the survival of the pensioner till the end of the policy term of 10 years.
  • At the end of three policy years (to meet the requirements of cash), 75 percent of the purchase price will be allowed to borrow. Loan interest will be paid from the installments of pension. The recovery of the loan will be done through the claim process.
  • Pension can be available monthly, quarter, half yearly, according to the option chosen during the purchase of pensioners during the ten year period.
  • This scheme has been exempted from service tax and GST.
  • This plan can be purchased through the Life Insurance Corporation via both offline (LIC) as well as online.
  • There is also permission for premature withdrawal for the treatment of any serious/terminal illness of the spouse himself or in this scheme. In the case of such premature withdrawal, 98 percent of the plan purchase price will be refunded.
  • According to the statement of the Finance Ministry, the responsibility of running this scheme has been given to the Life Insurance Corporation of India.
  • There is also permission for premature withdrawal for the treatment of any serious/terminal illness of the spouse himself or in this scheme. In case of such premature withdrawal, 98 percent of the plan purchase price will be refunded.
  • According to the statement of the Finance Ministry, the responsibility of running this scheme has been given to the Life Insurance Corporation of India.
  • Government will pay the cost associated with interest and real interest and the cost associated with administrative expenses to the LIC as a subsidy.

News Source: https://khabar.ndtv.com/news/business/pradhan-mantri-vaya-vandana-yojana-new-pension-scheme-to-be-launched-10-imp-things-1727468



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