What is Kisan Vikas Patra?
Kisan Vikas Patra is a savings cum investment scheme by the Indian post office department, that doubles the sum in 124 months (approx.). For instance, if you invest ₹1000 in Kisan Vikas Patra, you’ll receive ₹2000 at the time of maturity.
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This savings tool was launched in the year 1988 by India Post, initially to encourage farmers of the country to save money and build a corpus of funds for the future. But, as of now, this scheme is open to all Indian citizens.
The scheme aims to promote long term investing discipline among the people so that everyone can enjoy financial independence. These investments provide a sense of relief to investors by helping them create a pool of money for their future needs, hence, securing the future.
Who can Invest in Kisan Vikas Patra?
Let’s look at Kisan Vikas Patra eligibility, i.e., people who all are legally eligible to invest in this scheme;
- Any Indian citizen above the age of 18 years is eligible for Kisan Vikas Patra.
- There is also a provision of joint accounts for up to 3 adults.
- A guardian can open accounts in the name of a minor or a person of unsound mind.
- You can invest in Kisan Vikas Patra on behalf of your trust as well.
- Hindu Undivided Families and NRIs are not eligible for this scheme.
Types of Certificates available under Kisan Vikas Patra
There are three types of certificates under Kisan Vikas Patra, to choose from:
Single Holder Type Certificate
This type of KVP certificate is issued to a single adult or on behalf of a minor or to a minor.
Joint A Type Certificate
This second type of certificate is issued jointly to two adults. It is payable to both holders jointly or to the survivor only.
Joint B Type Certificate
This certificate is also issued jointly to two adults. But it is payable to either of the holders or to the survivor.
Kisan Vikas Patra Features
Following are the features of Kisan Vikas Patra:
Tenure
The objective of this scheme is to double the investment amount. So tenure totally depends upon the amount and interest rate. The estimated time period is 10 years and 4 months or 124 months approximately.
Amount
The minimum investment amount is ₹1000 and there is no upper limit for the maximum amount. Another important point to remember here is, the investments have to be made in the denominations of 1000 only.
Interest
The interest rate offered to the subscribers under this scheme remains quite high as it fluctuates between 6-8%. Also, the interest is locked throughout the tenure as it was on the day of investment. You will receive constant returns till your amount doubles, hence no worries of fluctuation.
Taxation
Kisan Vikas Patra Scheme does not fall under section 80C of the Income Tax act. Thus, no tax deductions can be claimed for KVP investments or interest received.
Loan
KVP certificates are also eligible to be kept as a mortgage against a loan.
Safe
Your investment is absolutely safe in the hands of the government and the returns are guaranteed. Unlike other investment options, Kisan Vikas Patra has no risk involved.
Premature Withdrawal
Despite a 124-months maturity period, there is a provision to prematurely withdraw your funds after 2 years and 6 months of opening. In other cases, the account can be closed prematurely only on the order of court or death of the account holder.
Accounts
A person can open any number of accounts under this scheme. This means you can buy any number of KVP certificates in your name.
Transfer
KVP can be transferred from one person to another in some specific cases only. It can be in the death of account holder to nominees or joint holders/ order by court/ on pledging of account to specified authority.
How to Invest in Kisan Vikas Patra?
This post office scheme does not support online procedures as of now. Although you can print out the form and pay in slip from https://www.indiapost.gov.in/ this website site.
You can buy Kisan Vikas Patra from your nearest post office branch or authorized banks. The scheme is appealing to people from rural areas as this does not require a bank account.
Step 1: Visit the nearest post office or bank branch. Ask for Kisan Vikas Patra form and fill it.
Step 2: Attach necessary self-attested documents. These include ID and address proof (ADHAAR card and PAN card will work). Two passport-sized photos of the account holder will also be needed.
Step 3: Fill the payslip mentioning the amount and details of your first investment. This can be made through cash, cheque or Demand Draft.
After completing the process you will receive the Kisan Vikas Patra Passbook either the same day or in some cases, it can be made available the next day as well. Earlier the subscribers used to receive a certificate in place of this passbook.
An important tip here is, when you fill out the KVP registration form, there would be an option to include nominees in case of the death of the account holder. It is advisable that you mention nominees in the form for a safer side. Fill in the complete details of the nominees to keep it hassle-free from unforeseen circumstances.
