Introduction:
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government pension scheme in India. It offers a pension income to senior citizens of age 60 and above. It helps them to survive during their retirement period with a stable income.
Guaranteed Returns :
It offers an interest rate which is more than the standard fixed deposits. Because currently they are providing the annual interest rates is about 7.4 % to them. This is based on the Government rules and regulations. At the end of the period the candidate will get the total investment amount and also their final pension payment.
Pension Payment :
The Pension Payment options will be made on monthly , quarterly , half yearly and annual basis. So these methods of pension payment can be selected by the person according to their preference and financial needs.
Maturity Benefit :
Maturity benefit means , at the end of the policy period the final pension payment will be returned to the policy holder. It also defines that the principal amount which was invested will not be lost but they will returned the amount with the terms of their policy.
Loan Facility :
Loan facility has some features , they can get the loan after the completion of the first policy year. They can get the loan amount up to 75 % and they can provide the additional financial support based on their needs.
Benefits :
1. They provide the regular income for the senior citizens.
2. The minimum lock in period is just 1 year , You can also cancel the scheme after one year if needed. But one year of usage is mandatory.
3. The investment is guaranteed by the Government of India, So that the investors can be in relax mode though their amount will be safe. Even though the market rate differs there will be no change in their investment amount.
