Independent guide. Money Schemes is not a government website and does not take applications or payments. Apply only on the official portal, at a post office, a bank branch or a Common Service Centre.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is closed to new subscribers: it was a 10 year pension plan for anyone past 60, and its sale window ended on 31 March of the year it was last extended, so no new policy can be bought today. Existing policyholders keep getting their pension at the rate fixed when they bought, until the 10 year term ends.
The finance ministry designed it, and only the public sector life insurer named in the notification could sell it. If you hold a policy, this page explains how the pension, loan, early exit and maturity work. If you were hoping to buy it, the last section lists open schemes for seniors.
At a glance
Status
Closed to new subscribers; existing policies continueSet up by
Ministry of Finance, Department of Financial ServicesTerm
10 years from purchaseRate in the last version
7.4 percent a year, fixed for the full termMaximum purchase
15 lakh rupees per senior citizen (last version)Pension range
1,000 to 9,250 rupees a month in the last version
Is Pradhan Mantri Vaya Vandana Yojana still open?
No. The pmvvy scheme was offered in limited windows, each extended by the government. The final window closed on 31 March and was not extended again. Since then no one can buy a new policy. Ads or calls offering a vaya vandana yojana policy today are not genuine; report them to the police cyber cell or the insurer.
What has not changed: every policy bought before the closing date keeps running under the terms printed on it.
PMVVY scheme details for current holders
| Feature | Rule in the last version |
|---|---|
| Entry age | 60 and above, no upper limit |
| Pension rate | 7.4 percent a year on the purchase price, fixed for 10 years |
| Payment options | Chosen at purchase: every month, every 3 months, every 6 months or once a year |
| Purchase price | Up to 15 lakh rupees per senior citizen |
| Pension | From 1,000 to 9,250 rupees a month |
| Maturity | Purchase price paid back with the last pension |
Policies bought in older versions carry the rate and limits of that version. Your policy bond shows which one applies.
Loan, early exit and death benefit
- Loan: after three policy years, you can borrow up to 75 percent of the purchase price. Interest on the loan is taken out of the pension payments, and any balance is recovered at maturity.
- Early exit: allowed only for a serious or terminal illness of the pensioner or spouse. The insurer pays back 98 percent of the purchase price.
- Death during the term: the full purchase price is paid to the nominee.
To use any of these, contact the branch of the insurer that issued the policy with the policy bond, ID and bank details.
Tax on the pension
Each pension credit counts as taxable income for that year, at your slab rate. There was no tax deduction on the amount invested. The purchase price returned on maturity or death is a return of your own money, not income. If you file a return, include the pension under income from other sources. Where tax was cut from the pension but your yearly income sits under the tax free level, a refund can be claimed when you file.
Not to be confused with Ayushman Vaya Vandana
People often mix up PMVVY with the ayushman vaya vandana yojana card. They are different. The Ayushman Vaya Vandana card is health cover under Ayushman Bharat PM-JAY for every citizen of 70 or more with no income test, giving hospital treatment cover at empanelled hospitals. It has nothing to do with pension or investment. Read about it on the Ayushman Bharat page.
Some people also search for it as VIP yojana; there is no separate scheme of that name. They usually mean this closed pension plan.
Open options for seniors now
For a fixed income after 60, these schemes are still open:
- Senior Citizen Savings Scheme: deposit up to the government limit, interest of 8.2% a year paid every quarter, 5 year term.
- Post Office Monthly Income Scheme: monthly interest of 7.4% a year.
- Senior citizen FDs at banks, where rates differ by bank and term.
Each has its own lock in, limit and tax treatment. Put them side by side on facts; a counter clerk or a SEBI registered adviser can explain the fine print.
Keeping your pension flowing
If a pension credit is missed, confirm the linked account has not gone dormant and the IFSC has not changed after a bank merger. Update any change at the insurer's branch with a cancelled cheque. Keep the nominee name current; it decides who gets the purchase price if something happens during the term.
Frequently asked questions
Can I invest in PM Vaya Vandana Yojana now?
No. The scheme closed to new subscribers when its last sale window ended. Only existing policies continue.
What was the PMVVY interest rate?
In the last version the rate was 7.4 percent a year, and it never changes during the policy. Earlier versions had different rates, shown on the policy bond.
What happens when my 10 years end?
With the last pension installment, the full purchase price is returned to your bank account.
Is a loan allowed against a PMVVY policy?
Yes, after three policy years, up to 75 percent of the purchase price. Loan interest is deducted from your pension.
Is ayushman vaya vandana yojana the same as PMVVY?
No. Ayushman Vaya Vandana is a hospital cover card for those 70 or older. PMVVY was a pension plan.
Official sources
- Department of Financial Servicesfinancialservices.gov.in
- Press Information Bureaupib.gov.in
Rules, amounts and portals can change. Check the official source before you apply or deposit.