Kisan Vikas Patra Scheme Apply Online | Kisan Vikas Patra Scheme Interest Rate | Kisan Vikas Patra Scheme Calculator | Kisan Vikas Patra Scheme Benefits
Kisan Vikas Patra is a savings certificate program that was launched by Indian Post in the year 1988. This is a government-sponsored program with the goal of increasing small-scale savings in the country and providing investors with a secure future.
However, the government relaunched Kisan Vikas Patra in 2014, making it mandatory to submit PAN card proof for investments over 50,000 and income proof for investments over Rs.10 lakh in order to prevent money laundering.
The main advantage of investing in KVP is its simplicity and accessibility. Certificates for Kisan Vikas Patra can be obtained from any post office in the country. Any Indian citizen can invest in the KVP scheme and receive a certificate in his or her own name or jointly in the name of a minor. Let’s have a look at the many types of certifications accessible through the KVP.
Table of Contents
Different Type of Kisan Vikas Patra Certificates Available
There are various types of certificates available.
The following are the many categories of certificates that can be obtained through KVP:
- Single holder certificate- This form of certificate is given to a single person for themselves or on behalf of a minor.
- Joint type (A) certificate- As the name implies, this form of certificate is shared by two people, and the benefits are shared by both the account holder and the survivor.
- Joint type (B) certificate- Benefits are payable to either the holder or the nominee when a type (B) certificate is issued jointly to two people.
Open Post Office Savings Account
Interest Rate on Kisan Vikas Patra
The interest rate on the Kisan Vikas Patra is 7.7% for the financial year 2019-20. Interest rates on the Kisan Vikas Patra are established by the government on a weekly basis and compounded annually. Let’s take a look at the current and prior year’s KVP interest rates.
| Quarter/Financial Year | 2015-2016 | 2016-2017 | 2017-2018 | 2018-2019 | 2019-2020 |
| April-June | 8.7% | 7.8% (Maturity tenure is 110 months) | 7.6% (Maturity tenure is 113 months) | 7.3% (Maturity tenure is 118 months) | 7.7% (Maturity tenure is 112 months) |
| July-September | 8.7% | 7.8% (Maturity tenure is 110 months) | 7.5% (Maturity tenure is 115 months) | 7.3% (Maturity tenure is 118 months) | 7.6% (Maturity tenure is 113 months) |
| October-December | 8.7% | 7.7% (Maturity tenure is 112 months) | 7.5% (Maturity tenure is 115 months) | 7.7% (Maturity tenure is 112 months) | 7.6% (Maturity tenure is 113 months) |
| January-March | 8.7% | 7.7% (Maturity tenure is 112 months) | 7.3% (Maturity tenure is 118 months) | 7.7% (Maturity tenure is 112 months) | 7.6% (Maturity tenure is 113 months) |
How Does KVP Make Money and Earn Interest?
Kisan Vikas Patra is a very safe and secure scheme with very little risk. The interest rate on the KVP plan is 6.9% at the moment. It will take roughly 10 years or 124 months for your money to double under the Kisan Vikas Patra scheme.
Let us consider a basic scenario in which Mr. X has deposited Rs.1,000 in the Kisan Vikas Patra scheme.
| Active Years Duration | Closure Value (Premature) |
| More than 2.5 years but < 3 years | Rs. 1173 /- |
| More than 3 years but < 3.5 years | Rs. 1211 /- |
| More than 3.5 years but < 4 years | Rs. 1251 /- |
| More than 4 years but < 4.5 years | Rs. 1291 /- |
| More than 4.5 years but < 5 years | Rs. 1333 /- |
| More than 5 years but < 5.5 years | Rs. 1377 /- |
| More than 5.5 years but < 6 years | Rs. 1421 /- |
| More than 6 years but < 6.5 years | Rs. 1467 /- |
| More than 6.5 years < 7 years | Rs. 1515 /- |
| More than 7 years but < 7.5 years | Rs. 1564 /- |
| More than 7.5 years but < 8 years | Rs. 1615 /- |
| More than 8 years but < 8.5 years | Rs. 1667 /- |
| More than 8.5 years but < 9 years | Rs. 1722 /- |
| More than 9 years but before Maturity of Certificate | Rs. 1778 /- |
| At the time of Maturity | Rs. 2000 /- |
Note: This website does not promote, rate, or recommend any specific insurer or insurance product.
Interest Rates in the Past
Interest rates in the Kisan Vikas Patra over the last few years in each quarter are listed here for your convenience.
| Quarter | Financial Year | |||||
| 2016-2017 | 2017-2018 | 2018-2019 | 2019-2020 | 2020-2021 | 2021-2022 | |
| April-June | 7.8% (matures in 110 months) | 7.6% (matures in 113 months) | 7.3% (matures in 118 months) | 7.7% (matures in 112 months) | 6.9% (matures in 124 months) | 6.9% (matures in 124 months) |
| July-September | 7.8% (matures in 110 months) | 7.5% (matures in 115 months) | 7.3% (matures in 118 months) | 7.6% (matures in 113 months) | 6.9% (matures in 124 months) | 6.9% (matures in 124 months) |
| October-December | 7.7% (matures in 112 months) | 7.5% (matures in 115 months) | 7.7% (matures in 112 months) | 7.6% (matures in 113 months) | 6.9% (matures in 124 months) | Yet to announce |
| January-March | 7.7% (matures in 112 months) | 7.3% (matures in 118 months) | 7.7% (matures in 112 months) | 7.6% (matures in 113 months) | 6.9% (matures in 124 months) | Yet to announce |
Note:This website does not promote, rate, or recommend any specific insurer or insurance product.
Eigigiity Criteria to Apply for KVP
The following are the requirements for investing in the KVP scheme:
- The applicant must be at least 18 years old.
- The applicant must be an Indian citizen.
- A minor is unable to purchase KVP. A person over the age of 18 can, however, obtain KVP certificates on behalf of a minor.
- Kisan Vikas Patra can be obtained on behalf of a minor, in the name of the applicant, or jointly by two individuals under varying kinds of certificates.
- KVP can be acquired through a trust.
- Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are ineligible to invest in KVP.
Features & Benefits of Kisan Vikas Patra
KVP is regarded as one of the safest investment options accessible on the market because it is a government-sponsored savings scheme. There are other advantages to investing in Kisan Vikas Patra, in addition to the high KVP interest rate. Let’s take a closer look at it.
- Return Guaranteed
KVP guarantees a high return on investment over a lengthy period of time as a government-sponsored savings scheme. This means that at the end of the scheme’s tenure, the account holder will receive the accrued funds as a maturity benefit.
- Rates of Interest
The government of India sets the interest rates for KVP, which are regulated on a quarterly basis. The KVP scheme’s effective rate of interest changes depending on the KVP term selected at the time of purchase. The current Kisan Vikas Patra interest rate is 7.7%, with the interest compounded annually on the invested amount.
- Financial Security
Kisan Vikas Patra is one of the safest investment options because it is not exposed to market risk. With a minimal investment of Rs.1000, investors can build a long-term corpus and secure financial security in the future. KVP certificates come in values of Rs. 1000, Rs. 5000, Rs. 10,000, and Rs. 50,000. The greatest amount of investment, however, has no upper limit.
- Tenure
The participants can invest in the scheme for a period of 9 years and 10 months (118 months). In 112 months, or 9 years and 4 months, the principal amount invested in Kisan Vikas Patra has doubled. The account holder can withdraw the funds once the scheme’s term has ended. Furthermore, until the account holder withdraws the money, interest will continue to accrue on the collected amount.
- Taxation
The Kisan Vikas Patra is not available. As a result of the Section 80C tax deduction, the scheme’s returns are fully taxable. TDS (tax deducted at source) is not taken from the withdrawal amount once the maturity period has ended.
- Premature Withdrawal
Despite the fact that Kisan Vikas Patra has a lock-in period of two years and six months, the cash can only be withdrawn after 118 months have passed. Premature withdrawal is not permitted under the scheme. Premature withdrawal is permitted in some circumstances, such as the unfortunate death of the account holder or court order.
- Loan Facility Against KVP
A secured loan can be obtained using the Kisan Vikas Patra certificate as security or collateral. The interest rate on such a loan, on the other hand, is rather low.
- Nomination Service
KVP provides a straightforward and safe way to nominate a candidate. All the subscriber has to do is pick up a nomination form from the post office and completely fill it out. If the nominee is a minor, the account holder must present the minor’s birth certificate, which must include the minor’s date of birth.
KVP classification
- Documents required in order to obtain Kisan Vikas Patra certificates
To obtain Kisan Vikas Patra certificates, the applicant must have a copy of the following documents on hand.
- For the KYC process, identification proof (Aadhaar card, voter ID, PAN, passport, driving licence) is required.
- Complete KVP application form completely.
- Certificate of Birth Date
- Proof of Address
2. Investing in Kisan Vikas Patra: A Step-by-Step Guide
The procedure for investing in Kisan Vikas Patra is quite straightforward. To accomplish so, one only needs to follow a few basic steps. Let’s take a look:
- The applicant must obtain an application form, Form A, from the post office and complete it with all essential information.
- Submit the fully completed form to the bank or post office after filling out all of the information.
- To complete the KYC process, the applicant must also submit essential papers such as address proof and identification evidence together with the application form.
- The applicant can make deposits when the documents have been verified. Deposits can be made in cash, demand draught, or check payable to the postmaster.
- After making the payment, the applicant will receive the KVP certificate in the mail. It is critical to keep the certificate safe because the applicant will be required to produce it when withdrawing.
Kisan Vikas Patra Encashment
If the investor wishes to cash his or her Kisan Vikas Patra certificate, he or she can do so at the same post office where it was issued. If the investor wishes to cash it at a different post office, he or she must follow certain procedures. To cash the Kisan Vikas Patra certificate, the account holder must produce the identity slip that was provided when the KVP certificate was purchased. The investor must submit a letter to the post office along with the identity slip in order to have the KVP certificate encashed.
Kisan Vikas Patra’s Rules & Regulations
Following the revival of the KVP scheme in 2014, the Government of India established a set of guidelines and rules for the scheme. Let’s take a look at the government-imposed KVP norms and guidelines.
- All of the government’s rules for KVP will be known as the ‘Kisan Vikas Patra Rules, 2014,’ and will go into effect the day they are published in the Official Gazette.
- KVP certificates will be issued in denominations of Rs.1,000, Rs.5000, Rs.10,000, and Rs.50,000.
- The KVP application process will be identical to the Post Office Savings Schemes Certificate Rules, 1960.
- Investors can purchase any number of Kisan Vikas Patra certificates in the above denominations.
- The certificate is issued as soon as the payment is received. The issue date of the certificate is the same as the payment date. If the KVP certificate is not awarded right away for any reason, the applicant is given a temporary letter that can be exchanged for a certificate later.
- The applicant must go to the post office and fill out an application form in order to obtain a KVP certificate. Cash, check, or demand draught in the name of the postmaster can be used to pay for these certificates.
- By sending a letter of request to the postmaster, the account holder can transfer the KVP certificate. The following are the conditions under which a certificate can be transferred.
- From the account holder’s name to the beneficiary’s name.
- To a joint account holder’s name from a single account holder.
- From a bank account holder to a court of law or another person acting on a court of law’s directives.
- The account holder can name anyone as a beneficiary of the programme, and that person will be allowed to keep the KVP certificate after the account holder passes away. After the scheme’s maturity time has expired, the collected funds will be delivered to the nominee.
- If the accumulated fund, including interest, has not been repaid, interest on the due amount will be charged in the following cases:
- Simple interest will be applied, and it will be calculated at the current relevant rate of interest.
- The account holder can receive the interest as a lump sum when the due amount is withdrawn.
- If the account holder loses, destroys, or damages the KVP certificate, he or she can apply for a duplicate copy at the post office where the certificate was issued. The amount, certificate number, explanation of loss or destruction, and date should all be included in the application. The reissued duplicate certificate can be used in place of the original certificate. It will not, however, be encashed without previous verification.
Transfer Kisan Vikas Patra Certificate
For the transfer of the KVP certificate from one person to another, the account holder must file a formal application to the registered post office. The KVP certificate can be transferred under the following circumstances.
- Transfer of a deceased person’s KVP certificate to his or her heir.
- From being a single account holder to having a joint account.
- Changing from a joint to a single account holder
- From a bank account holder to a court of law or another person acting on a court of law’s directives.
Transfer Kisan Vikas Patra Certificate via Internet
The Department of Indian Post has made it possible for account holders to transfer their KVP certificates from one post office to another.
To begin the transfer procedure from the registered post office to any other post-office, subscribers must complete Form B of KVP transfer and submit it to the registered post-office together with the relevant papers.
Documents Required for the KVP Post-office Transfer
The following is a list of documents required for the KVP post-office transfer
- PAN card, Aadhaar card, voter ID, passport, or driver’s licence as identification proof.
- Completely filled out and attested Form i.e Form B
- Original KVP certificate
- Application, signed by the subscriber, verifying the transfer.
- A loan against KVP
A KVP certificate holder can take out loans against the program. Let’s look at the terms and conditions for taking out loans against the Kisan Vikas Patra.
- The loan can be taken out in the account holder’s name.
- The loan against KVP can only be used for business or personal reasons.
- The account holder is not permitted to request for a loan for any speculation.
- On loans for KVP, different banks and post offices charge different interest rates and fees.
- The fees that apply to a loan change from time to time. Furthermore, certain banks may impose processing costs in order to approve the loan.
- The applicant must pay back the loan within the KVP period.
- The bank determines the loan amount and margin based on the KVP investment and certificate maturity.