Kisan Vikas Patra is a saving certificate scheme which was first launched in 1988 by India Post. The Kisan Vikas Patra or KVP Certificate as it is called can be purchased from any Departmental Post Office. The minimum deposit amount is Rs. 1000. There is no maximum limit fixed. The KVP certificate under the Kisan Vikas Patra Scheme, can be purchased by an adult for themselves or on the behalf of a minor. It can also be purchased by 2 or more adults and can only be encashed after a minimum of two and half years.
Though the Kisan Vikas Patra Scheme did not take off after its initial launch, it came back with a bang to be accepted by the masses. Loads of benefits accompanied the KVP on its return;
- Long term Savings
- 100% Security
- Fixed Rate of Interest
- Collateral for Loan
- Tax – Benefits
- Fixed Lock-in Period
The KVP has very attractive Rates of Interest. The amount you invest is doubled at the end of term, earning an interest of 8.7% per annum. This aspect helps immensely for those of you looking for a plan that helps you meet your long term financial goals.
Some of the other Salient features of the KVP is as follows.
- The Amount invested through KVP can be doubled in 8 years and 4 months (100 months).
- The Kisan Vikas Patra denominations of Rs.1,000, Rs.5,000, Rs.10,000, and Rs.50,000.
- Minimum deposit towards KVP is Rs.1,000. There is no limit on the deposit.
- An adult can purchase the KVP certificate for himself or herself or on behalf of a minor.
- The KVP also extends Nomination facilities.
- KVP can be purchased from any departmental Post office.
- Transfer of KVP certificate is also possible from one individual to other as well as from one post office to another.
- The Kisan Vikas Patra encashment can be done after 2.5 years from the issue date of KVP.
- The minimum lock-in period under this scheme is 2 years and 6 months.
The following are the eligibility criteria for Kisan Vikas Patra.
- The applicant must be an adult and an Indian.
- The Kisan Vikas Patra can be applied for either by the applicant in his own name or on behalf of a minor.
- Trusts are eligible to invest in Kisan Vikas Patra. HUFs (Hindu Undivided Family) and NRIs are not eligible to invest in KVP.
The KVP Interest calculator is an online tool that enables the investors to know the amount of interest they are likely to earn on their investment. To access Kisan Vikas Patra Interst Calculator online, visit the web-link, financialcalculators.in/kisan-vikas-patra-kvp-calculator.
The Kisan Vikas Patra can be encashed at the Post office where KVP was issued. In case you need to encash it at a different post office, some formalities has to be completed. In order to encash a KVP, you need to submit the identity slip that was offered at the time of KVP certificate purchase.
To encash a KVP certificate, all you have to do is give a letter in writing to the concerned post office and also present your identity slip.
The KVP also serves its customers during acute emergencies by extending loan facilities.
A holder of Kisan Vikas Patra can avail a loan against the same. Following are the conditions for availing a loan against KVP.
- The loan applicant must have a Kisan Vikas Patra under his own name.
- The loan against Kisan Vikas Patra can be availed for business or personal purposes only..
- Different banks have different charges and interest for loans against KVP.
- The loan should be repaid within the tenure of KVP which is 8 years and 4 months.
- The margin and loan amount will be decided by the bank based on the KVP investment and maturity.
Kisan Vikas Patra – Frequently Asked Questions
- Should I lose of misplace my KVPs, what is the process to obtain a duplicate certificate?
- To obtain a duplicate KVP certificate, you need to write to the Post Office of KVP issue requesting a duplicate certificate and attach the identity slip that was given at the time of issue. The identity slip will prove your ownership of KVPs. If you have lost or misplaced the identity slip, please contact the Post Office of issue for further instructions.
- Can I invest Teachers’ Provident Fund in Kisan Vikas Patra scheme?
- No, Teachers’ Provident Fund does not qualify for an investment under KVPs.
- I have shifted to a different city. Can I encash my KVPs at the Post Offices here other than the Post Office of issue?
- Kisan Vikas Patra can be encashed at any Post Office if your identity slip is accepted and if it is confirmed by the Post Office that you are the rightful owner. Ideally, it would be a lot easier for you if you could encash your KVP at the Post Office of issue.
- Are Co-operative Societies and Co-operative Banks allowed to invest in Kisan Vikas Patra (KVP)?
- No, Co-operative Societies and Co-operative Banks are not allowed to invest in Kisan Vikas Patra (KVP).
- Can NRIs and HUFs invest in the KVP scheme?
- No, KVP scheme is open only for resident individuals. NRIs and HUFs are not eligible to invest in Kisan Vikas Patra.