Finance Minister Arun Jaitley will launch a new pension scheme for the senior citizens, Pradhan Mantri Vaya Vandana Yojana, PMVVY in New Delhi today. The scheme can be purchased offline as well as online through Life Insurance Corporation of India. The PMVVY scheme will be available till 3rd of May next year.<br/><br/>The Finance Ministry said, the scheme provides an assured return of 8 per cent per annum payable monthly for 10 years. It said, the pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly or quarterly or half-yearly or yearly as chosen by the pensioner at the time of purchase. <br/><br/>The Ministry added that, the scheme has been exempted from Service Tax or GST. On survival of the pensioner to the end of the policy term of 10 years, purchase price along with final pension installment will be payable. Loan upto 75 per cent of purchase price will be allowed after 3 policy years to meet the liquidity needs. Loan interest will be recovered from the pension installments and loan to be recovered from claim proceeds. <br/><br/>The scheme also allows for premature exit for the treatment of any critical or terminal illness of self or spouse. On such premature exit, 98 per cent of the Purchase Price shall be refunded. On death of the pensioner during the policy term of 10 years, the purchase price will be paid to the beneficiary. The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Life Insurance Corporation of India.