New

Published on:

January 15, 2025

Udeetta Sarma

Blog |

Govt. Schemes

Pradhan Mantri Laghu Vyapari Maandhan Yojana Details

In India, small traders and petty shopkeepers are the backbone of the economy. They are a major source of employment and GDP for the nation. Understanding the plight of this segment, the Government of India launched the Pradhan Mantri Laghu Vyapari Maandhan Yojana (PMLVMY). This social security scheme provides social security to small traders in their old age and guarantees them financial security.

This blog will take you through the details of the scheme, the benefits of the scheme, the eligibility criteria, how to register under this scheme, and why it marks a landmark initiative in empowering small traders.

What is PMLVMY?

Pradhan Mantri Laghu Vyapari Maandhan Yojana (PMLVMY) is a pension scheme on a voluntary and contributory basis implemented by the Government of India. It is intended to deliver a monthly minimum pension of ₹3,000 to small traders and shopkeepers after they turn 60. This scheme was launched specifically keeping in mind the small businesses to give the businesspersons a comfortable financial condition in their old age.

The scheme forms part of the government’s larger scheme to provide a safety net for the unorganised sector, a big chunk of the Indian workforce. Through PMLVMY, small traders can ensure their future without solely relying on their savings or family assistance.

You might also be interested in learning about A Comprehensive Guide to Unemployment Schemes in India.

Key Features of PM Laghu Vyapari Maandhan Yojana

Monthly Pension:

With the principle of a Fixed Monthly Pension, a pension of ₹3000 is paid post the age of 60.

Voluntary Participation:

The scheme is completely voluntary which allows them to opt-in, depending on their future financial ability and forward planning.

Contributory scheme:

The scheme is contributory, meaning the trader and the government both contribute to the pension fund equally.

Family Pension:

In the event of the death of the beneficiary, the spouse is entitled to receive an amount equal to 50% of the pension amount as a family pension.

Easy Registration:

Simple and can be done online or in centres with little Insta.

Age-Based Contribution:

The trader's contribution each month will depend on how old he was when he enrolled. For instance, a 30-year-old trader invests approximately ₹100 per month, and this gets matched by the government as well.

Eligibility Criteria

Following are the eligibility conditions to avail the benefits of PM Laghu Vyapari Maandhan Yojana:

Age:

The age limit varies but generally, applicants should be between 18 and 40 years of age

Annual Turnover:

As per the guidelines, the annual turnover of the business should be less than ₹1.5 crore.

Profession:

There is a range of professions eligible for the provincial nominee program, which includes a small trader, shopkeepers, or self-employed individuals working in small-scale business activities.

Advantage EPFO/ESIC Members:

If you are already a member of EPFO, ESIC or the National Pension Scheme(NPS), then you are not eligible under this scheme.

Income Tax:

Those who pay income taxes are also excluded from this scheme.

Maan Dhan Yojana Registration Process

The Maan dhan yYojanaregistration is simple and done to provide you with hassle-free enrollment. Here’s a step-by-step guide:

Go for Registration at the Nearest CSC:

You can register at your nearest Common Service Centre (CSC) accompanied by the required documents.

Documents Required:

A Scanned Copy of your Aadhaar card, PAN card, and your savings bank account or Jan Dhan account information.

Self-certification:

Self-certification of annual turnover.

First Contribution:

Make that first contribution amount cash, and according to your age

Issuance of pension card:

After completing your registration, a pension card will be provided to you.

Or, traders can also sign up online using the official PMLVMY web page. Since it’s an online process, this will be easier for us both those people who have internet access and basic digital literacy.

Why is the PM Laghu Vyapari Maandhan Yojana Important?

Trade Support for Small Investors:

Most small investors do not have the capital to build a retirement fund. Through the scheme, they are given a steady pension, which allows them to live independently and be financially secure in their senior years.

Motivation for Legitimation (formalization):

Traders who register in the scheme formalize their activity, granting them access to other government benefits and financial products.

Government funded:

The scheme is highly attractive due to the government providing its equal contribution, thereby, relieving the burden of traders.

Accessibility:

The scheme is user-friendly, with a simple registration process and fewer requirements, making it accessible to multiple beneficiaries.

Keep learning more about government schemes on our blog “Top Government Schemes for Business Growth in India 2024”.

Challenges and Solutions

Although the PMLVMY is a commendable initiative, it certainly has challenges:

Lack of awareness:

Many small traders do not know about the scheme. To reach the maximum people we need an effective awareness campaign.

Improve Digital Literacy:

As part of the process of registering comes with online platforms, enhancing the digital literacy of the traders is of utmost importance.

Timely Contributions:

Getting traders to contribute regularly can be a tough job. The problem can be fixed if we simplify the payment modes like auto-debit.

How PMLVMY Compares to Other Pension Schemes

There are several unique characteristics of the Pradhan Mantri Laghu Vyapari Maandhan Yojana — one of them being its specific targeting of small traders. While other such schemes such as the Atal Pension Yojana or NPS include larger unorganized sector workers, PMLVMY is targeted specifically at owners of small businesses. It's good to know that this scheme is in line with the specific financial needs of the targeted audience.

How to Maximize Benefits from the Scheme

Early Enrollment:

The earlier you enrol, the lesser your monthly contribution and the longer you eat the fruit of the government contribution.

Solid Contributions:

Keeping up with payments means a steady stream of pension income.

Community Awareness:

Engage with your peers, promoting the scheme and creating a culture of financial security within the community.

Secure Your Future with PMLVMY – Get Started Today!

At Swipe, we empathize with small traders and shopkeepers on the vital need for financial security. The Pradhan Mantri Laghu Vyapari Maandhan Yojana (PMLVMY) provides an opportunity to secure a stable and dignified retirement with an assured monthly pension.

Don’t allow the drudgery of paperwork or confusion to stop you! But with Swipe, you can reduce your business complexity and learn about government schemes such as PMLVMY. Check out Swipe for tools that champion your business and lead you to key openings. Secure your future today!

Conclusion

One such prime initiative to ensure a secure future for small traders and shopkeepers is the Pradhan Mantri Laghu Vyapari Maandhan Yojana (PMLVMY). In addition to ensuring secure old age, it adds to their dignity and independence. The scheme has the potential to uplift millions of small business owners in India by resolving the challenges faced by this segment in particular.

If you are a small trader or shopkeeper, act quickly! Today is the day when you can register for the main dhan yojana and become a part of taking a step towards a financially secure life.

FAQ

1. What is PMLVMY and who is it for?

Pradhan Mantri Laghu Vyapari Maandhan Yojana (PMLVMY) Pension Scheme for Small Traders & Shopkeepers It is a scheme in the form of a monthly pension of ₹3,000 after the age of 60, to provide financial support to businesspeople with annual business turnover of up to ₹1.5 crore.

2 . Which one is eligible for the scheme?

The applicants must be 18 to 40 years old and their business turnover should be less than ₹1.5 crore to be eligible. They must not be subject to income tax nor be covered under EPFO, ESIC or NPS.

3. How do I sign up for the scheme?

If you haven't registered yet, you can go to your nearest Common Service Centre (CSC) with your Aadhaar card, PAN card, and bank account to register. Also, the candidates can do online registration from the official PMLVMY portal as well.

4. What happens if a beneficiary passes away?

Upon the death of the beneficiary, the spouse is entitled to receive 50% of the monthly pension as a family pension. This guarantees ongoing income for the family.

5. How much does it contribute, and does the government chip in as well?

The premium varies by the age of the applicant and begins at ₹55 a month for young enrollees. The contribution is equal from the government side end and thus this becomes an affordable and useful scheme for small traders.

‍