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Kisan Vikas Patra Eligibility, Interest Rate, Features and Benefits

Kisan Vikas Patra Eligibility: Are you sitting in front of the computer searching for a Saving Scheme which will give you a good interest rate with attractive features and benefits? If you are among one of them, then you are at the right place. Kisan Vikas Patra is one such savings scheme, which falls under the above mentioned criterias. The Kisan Vikas Patra also known as KVP in short is a saving which was launched by Indian Post Office in the year 1988. The savings scheme is available in the form of certificates thus making it more unique. The KVP has a fixed interest rate which doubles up your investment amount in a period of 118 months (9 years and 10 Months).

What makes the Kisan Vikas Patra unique, is its risk-free attribute. The scheme works under the Goverment of India thus giving the applicants an assurity in their investment. In this article, we will provide you all the information that you require to know about the Kisan Vikas Patra (KVP) before opening an account. We will discuss about its Kisan Vikas Patra Eligibility criteria, its interest rate, features, benefits and much more. So, let’s just not waste time and start with the Kisan Vikas Patra (KVP) Savings Scheme details.

Contents

Kisan Vikas Patra Eligibility Criteria Savings Scheme

Before investing your money into any scheme, be it a Government based / Private based. It is very necessary to know whether you are applicable for the scheme or not. Every savings scheme has a particular eligibility criteria, thus making it more sorted and easier. You can buy the Kisan Vikas Patra at any nearest Post Office, or it is also available online and at selected Banks as well.

Kisan Vikas Patra Eligibility Criteria Savings Scheme are as follows-

  • The Applicant must be 18 years or above in age.
  • Must be a Resident of India.
  • If the candidate is a minor, then the KVP Scheme can be invested by the Parents/Guardian on the applicant’s behalf.
  • Trusts can also buy scheme.
  • Two adults jointly can also apply for this scheme.

Applicants who cannot apply for KVP Scheme

  • Hindu Undivided Families (HUFs)
  • Non – Resident Indians (NRIs)

Interest Rates provided by the Kisan Vikas Patra (KVP) Scheme

The Kisan Vikas Patra, offers a rate of Interest of 7.3% per annum that gets doubled (investment) after every 118 Months. The rates of interests may change periodically based on the announcement made by the Finance Ministry. The Principal of KVP Savings Scheme is compounded anually.

Earlier Interest Rates of Kisan Vikas Patra is as follows

Time Period Interest Rate of KVP Scheme
Q2 FY (2018-19) 7.3% (Maturity at 118 Months)
Q1 FY (2018-19) 7.3% (Maturity at 115 Months)
Q4 FY (2018-19) 7.3% (Maturity at 115 Months)
Q3 FY (2018-19) 7.5% (Maturity at 115 Months)
Q2 FY (2018-19) 7.5% (Maturity at 115 Months)
Q1 FY (2018-19) 7.5% (Maturity at 115 Months)

Features and Benefits of Kisan Vikas Patra Savings (KVP) Scheme

The KVP Savings Scheme offers unlimited features, as per the priority and requirements of the applicants. The features of Kisan Vikas Patra are as follows-

  • Guaranteed Returns

The scheme is basically meant for the Farmers and the people residing in the rural areas. Besides the Market ups and down, the return amount of the Scheme is stable and guranteed. The certificates are available in denominations of Rs 1000, Rs 5000, Rs 10, 000 and Rs 50, 000.

  • Capital Protection

The KVP Savings Scheme is a safe mode of investment and is free from the market risks. You will receive the gains and the investment as soon as the tenure period ends.

  • Fixed Interest Rate

The effective interest rates of Kisan Vikas Patra varies depends on the number of years invested in KVP at the time of purchase. The current interest rate of KVP Scheme is 7.3% which got into effect from 1st January 2018. Since, the scheme is compunded anually, you will receive more returns in your deposit.

  • Tenure

The Maturity Period of Kisan Vikas Patra is 118 Months. The Maturity for KVP proceeds to continue till you withdraw the amount.

  • Tax- free

The Kisan Vikas Patra Savings Scheme does not come under 80C Deductions and the returns are completely taxable. The TDS (Tax Deduction Source) is exempted from withdrawals after the maturity period.

  • Nomination Facility

You can collect the Nomination Form from the nearest Post Office and fill up the required information of the nominee. If you are nominating a minor, then do mention their Date of Birth.

  • Easy and Affordable

The Kisan Savings Scheme Certificate is available in denomination of Rs 100, Rs 500, Rs 1000, Rs 10, 000 and Rs 50, 000 for investment. There is no maximum limit. The denominations of 50, 000 is available only at the Head Post Office of the city.

  • Loan against KVP Certificate

You can use for KVP Certificate as a security to avail secured loans. The rate is comparatively less for such loans.

  • Issuance of KVP Certificate

If the payment is done through cash, then the issuance of the certificate is done at the spot. If the payment is done through Demand Draft, Cheque, or Money Order then you will have to wait till the amount is cleared to the post office.

After the issuance of Kisan Vikas Patra Certificate, a KVP Identity Slip is present at the end of the application form which contains the KVP Seriel Number, the amount, the maturity date and the amount to be received at the date of maturity. The Kisan Vikas Patra Scheme is transferable from one person to another as well as from one post office to another post office.

Premature Encashment of Kisan Vikas Patra

The Investors are allowed to withdraw the fund at any period of time but to claim that, it has certain limitations.

  • Premature Withdrawals made within a period of 1 year will not receive any Interest. The investor will also have to pay some penalty as per the scheme regulations.
  • Premature withdrawals made after the period of 1 to 2.5 year, will receive interest but at a reduced rate.
  • Premature Withdrawals made after the period of 2.5 years will receive interest but at an applicable rate.

Procedure of Investment in Kisan Vikas Patra (KVP) Savings Scheme

You can make the investment in Kisan Vikas Patra both Online and Offline. The process to invest your fund in KVP Scheme is as follows –

Offline Procedure of Investment in Kisan Vikas Patra Scheme

  • Visit the nearest Post Office
  • Collect the Application Form (Form-A)
  • Fill in the details correctly.
  • Submit the Filled Application Form at the Post Office.

If the investment in KVP is through an agent, then the agent should fill the form (Form – A1).

Online Procedure of Investment in Kisan Vikas Patra Scheme

  • Visit the Official website of Indian Post
  • Download the Online Application Form (Form – A) and Fill in with correct details.

Documents Required for taking Kisan Vikas Patra Scheme (KVP)

The KVP Application Process includes Know Your Customer (KYC) Process which is mandatory. The documents required in the Application Procedure of KVP Scheme are –

  • Candidates have to submit a copy of ID Proof such as (Aadhaar Card/ PAN Card/ Voter ID/ Driving License/ Passport).

Once the documents are verified, and you receive a deposit. A KVP Certificate will be issued. Keep the certificate safe as you will need to submit the certificate at the time of maturity. You can also send a request to send you the certificate through e-mail.

The Kisan Vikas Patra is a worth long-time investment scheme that is applicable for every category of person. It is affordable and easy to manage. So, if you have made up the plan then get your monet ready and visit the nearest Post Office.


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