Axis Max Life Insurance
Term Insurance
Investment Plans
Healthcare Plans
NRI Plans
Calculators
Join as Advisor

KVP - Kisan Vikas Patra Scheme

Kisan Visas Patra, or KVP, is a scheme that is specially designed to encourage people to save funds and make long-term investments. It is offered by the Indian post office.

Kisan Vikas Patra scheme is one of the most popular savings options initiated by the government of India. Its primary
...Read More

Max Life Investment Plans

Image for tax percentage
Tax Savings upto Rs 46,800##
Image for guard icon
99.70% Death Claims Paid Ratio^
Image for discount icon
High Growth Fund Return 32.7%~^
Image for zero commission icon
Life Cover

Disclaimer

: In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.

Maximise Your Savings With Axis Max Life Investment Plans

image we_dont_spam_2_d4af8fb993

Select options
Profile picture of the Abhishek Chakravarti

Written by

Abhishek Chakravarti
Profile picture of the Abhishek Chakravarti

Abhishek Chakravarti

BFSI Writer

Abhishek is a financial writer with over 6 years of experience in the BFSI sector. Prior to his current stint with Axis Max Life Insurance, he has worked with leading fintech startups. He specializes in writing about taxation and various investment products like ULIPs, retirement plans, guaranteed investment plans, mutual funds etc.

:

Reviewed by

Sahil Rawal
Profile picture of the Sahil Rawal

Sahil Rawal

BFSI Expert

Sahil Rawal is a digital & brand management specialist with over 10 years of experience in Financial Services Industry. Life insurance professional with expertise in digital marketing strategy, website content marketing and brand communication designed to increase brand awareness, drive engagement & sales.

Kisan Vikas Patra: Features and Benefits

Being a government-sponsored scheme, the KVP scheme is considered a safe and secure investment option. Apart from good interest rates, KVP comes with many other features and benefits. Let us take a look at them: -

· Guaranteed Return

KVP is a risk-free financial instrument that offers guaranteed returns on your long-term investment. In other words, the investor is sure to receive the accumulated money as a maturity benefit in completion of the scheme tenure.

· Financial Protection

KVP is one of the safest investment options available today. You can start investing in KVP with a minimum amount of Rs. 1000, and accumulate a significant corpus in the long term. The KVP scheme certificates are available in different denominations—Rs. 100, Rs. 2,000, Rs. 5,000, Rs. 10,000. There is no upper limit to the amount of investment.

· Tenure

The tenure of the KVP scheme is 9 years and 10 months, or 118 months. The initial investment made under KVP doubles in 112 months. Once the tenure is complete, you can withdraw the money. The interest keeps accruing on the investment till you withdraw the money.

· Premature Withdrawal

Kisan Vikas Patra scheme comes with a lock-in period of 2 years and 6 months, and withdrawal is allowed only after 118 months. One cannot make premature withdrawals under KVP. However, premature withdrawal may be applicable in case of a court order or the unfortunate death of the account holder.

· Loan Facility Against KVP

Any individual to use the KVP certificate as collateral to avail of a loan. Also, the interest rate applicable to such loans is comparatively low.

· Nomination Facility

KVP has a simple process for nominating a nominee. The account holder only needs to submit a duly filled nomination form at the post office. If the nominee is a minor, the subscriber has to submit the birth certificate with the date of birth mentioned.
image Kisan-Vikas-Patra-Scheme-1

How Does KVP Double Your Investment?

Now that we know what is Kisan Vikas Patra scheme?, let us understand how it can double your investment. Kisan Vikas Patra, generally known as KVP, is one of the best savings schemes provided by the post office that can double the initial investment of an individual. The time in which the KVP scheme doubles your investment depends on the recent interest rates.

Currently, the interest rate offered by KVP is 6.9% compounded annually. So, it will take about 10 years and 4 months or 124 months to double your investment. Under the KVP scheme, an account can be opened with a minimum deposit of Rs. 1,000, and there is no upper limit.

image Kisan-Vikas-Patra-Scheme-2

Kisan Vikas Patra Interest Rate 2022

Kisan Vikas Patra scheme is a savings plan which offers fixed interest rates and aims to multiply your funds within a given time frame. The current KVP interest rate is 6.9%

Historic Interest Rates of KVP

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)

Eligibility Criteria to Apply for Kisan Vikas Patra

Here are the eligibility criteria to invest in the KVP scheme: -

  • The individual should be above the age of 18 years.
  • The individual should be a citizen of India.
  • Minors are not eligible to purchase KVP. However, people above the age of 18 years can buy KVP on behalf of a minor.
  • Minors are not eligible to purchase KVP. However, people above the age of 18 years can buy KVP on behalf of a minorf.
  • The KVP certificates can be purchased by a trust.
  • Hindu Undivided Family (HUF) and NRIs (Non-Residents of India) are not allowed to invest in KVP.
image Kisan-Vikas-Patra-Scheme-3

What are the Documents Required to get Kisan Patra Certificates?

Following are the documents required for an individual to get the Kisan Vikas Patra scheme certificates: -

  • Identity proof required for the KYC process—Aadhar/Pan/Driving License/Voter ID/ Passport.
  • Proof of address
  • Date of birth certificate
  • The application form for KVP

Steps to Invest in Kisan Vikas Patra

The investment process for the KVP scheme is simple. You just need to follow these steps: -

Step 1: Collect the KVP application form called Form A and fill it out properly.

Step 2: Submit the duly filled form to the post office.

Step 3: Also submit the supporting documents such as identity proof and address proof along with the form.

Step 4: Once the verification of documents is done, you can make the deposit through cash, cheque, or demand draft.

Step 5: After that, you will receive the KVP certificate in your email after the completion of the payment. Keep the certificate safe as you need to submit it when you withdraw your funds.

Encashment of Kisan Vikas Patra

If you need to encash your KVP scheme certificate, then you can do so at the same place where it was issued. In case you want to encash it at a different post office, then you will be required to go through some formalities.

In order to encash your KVP certificate, you must submit the identity slip offered while buying the KVP certificate. You also need to submit a written letter.

Taxability of Kisan Vikas Patra

The Kisan Vikas Patra Scheme does not offer any tax benefits. The interest earned on the investment is taxable under ‘Income and Other Source’ that is paid every year. Moreover, a TDS of 10% is also deducted from the interest. Although, keep in mind that the final maturity amount is exempted from any tax deductions.

How to Transfer Kisan Vikas Patra Certificate from One Person to Another?

The KVP account holder needs to submit an application in writing in order to transfer the KVP certificate from one person to another. The transfer can be done in the following cases: -

  • If the account holder unfortunately dies, the KVP can be transferred to their nominee/legal heirs.
  • If the account holder dies, the account can be transferred to the joint holder(s).
  • In case of a court order.
  • If the account is pledged to a specific authority.

Documents Needed for Transfer of KVP Post Office

Following are the documents required for an individual to get the Kisan Vikas Patra scheme certificates: -

  • Identity proof
  • Duly filled form B.
  • Address proof
  • The original copy of the KVP certificate
  • An application signed by the subscriber confirming the transfer.

Loan Against KVP

The subscribers of KVP can avail of loans against the scheme. Here are some of the conditions for availing of loans against the KVP scheme:

  • The loans may be taken in the name of the subscriber.
  • The loan may be used only for business and personal purposes.
  • The subscriber is not allowed to take loans for any speculative objectives.
  • Different post offices and banks offer different rates of interest on loans against KVP.
  • The charges applied to take loans against KVP vary from time to time. Furthermore, some banks also charge a processing fee to sanction the loans.
  • Depending on the maturity of KVP and the investment amount, the loan amount is decided by the bank.
image Kisan-Vikas-Patra-Scheme-4

KVP Maturity Period

The current KVP maturity period for the Kisan Vikas Patra scheme is 10 years and 4 months, or 124 months.

Premature Withdrawal Rules of Kisan Vikas Patra

The minimum lock-in period for the KVP scheme is 2 and a half years. During this period, the KVP certificate can be encashed prematurely only under some circumstances. These situations may include: -

  • The death of the account holder or any of the holders.
  • In case of a court order.

Frequently Asked Questions (FAQs)

search

1. Can the Post Office issue a Duplicate Kisan Vikas Patra if I lose the original?

2. Can Kisan Vikas Patra be Encashed at Any Post Office?

3. Are Cooperative Banks/Cooperative Societies Permitted to Invest in Kisan Vikas Patra?

4. Are there tax benefits of investing in the Kisan Vikas Patra Scheme?

5. Is Kisan Vikas Patra scheme’s interest taxable?

6. Who can invest in Kisan Vikas Patra?

7. Can NRIs and HUFs invest in the KVP scheme?

8. What is the maximum investment limit in Kisan Vikas Patra?

9. Can KVP be encashed prematurely?

10. What is the current rate of interest that can be earned with this scheme?

11. What happens if the certificate is not encashed after the scheme reaches maturity?

12. Can KVP investments be made on behalf of a minor?

ARN No: PCP/KVP/030123

Source:

https://www.etmoney.com/income-tax-saving/national-savings-certificate

https://www.axisbank.com/retail/investment/kisan-vikas-patra/features-and-benefits

https://www.timesnownews.com/business-economy/personal-finance/planning-investing/article/double-your-money-with-guaranteed-return-assurance-with-this-post-office-scheme/834551

https://economictimes.indiatimes.com/wealth/invest/latest-kisan-vikas-patra-interest-rate/articleshow/90976123.cms

https://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=180

https://www.timesnownews.com/business-economy/personal-finance/planning-investing/article/double-your-money-with-guaranteed-return-assurance-with-this-post-office-scheme/834551

https://www.business-standard.com/about/what-is-kisan-vikas-patra

https://www.livemint.com/money/personal-finance/how-income-tax-on-kvp-is-calculated-11654010045781.html

https://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=88

https://www.timesnownews.com/business-economy/personal-finance/loans/article/need-money-urgently-you-can-borrow-loan-against-these-two-small-savings-schemes/781309

https://www.livemint.com/money/personal-finance/kvp-premature-encashment-how-much-you-will-get-1564046201945.html

Share your Valuable Feedback

Rating Icon

0

Rated by 0 customers

Was the Information Helpful?

Rate this product

Very Good

Popular Searches

Ulip PlanTax Saving InvestmentTax CalculatorULIP CalculatorULIP Saving PlanInsurance CalculatorOnline InsuranceHow to Save Tax with UlipsHow to Choose the Best Investment PlanWhat is Investmentulip benefitsTerm PolicyTerm Insurance Premium CalculatorSmart Term Plan PlusCritical Illness PolicyClaim Settlement RatioBest Life Insurance PolicyOnline InsuranceChild InsuranceRetirement PlanBest Saving PlanGroup Insurance PlanChoose Best Health Insurance PlanBecome an agentTypes of Best Investment Plan In IndiaBest Investment Options In IndiaFD CalculatorBest FD schemeRecurring Deposit CalculatorOnline CIBIL ScoreBest RD SchemeSystematic Investment PlanSIP CalculatorEndowment Policy MeaningPersonal Accident InsuranceCompound Interest rate calculatorHow To Invest In Gold24 Carat Gold RateReturn on Investment CalculatorTerm Insurance for HousewifeTop Mutual FundsTerm Plan for Self EmployedTerm Insurance Plan for Senior CitizenNRI Insurance PlansBest Term Plan for Women
Online Sales Helpline
  • Whatsapp: 7428396005Send ‘Quick Help’ from your registered mobile number
  • Phone: 0124 648 890009:30 AM to 06:30 PM
    (Monday to Sunday except National Holidays)
  • service.helpdesk@axismaxlife.comPlease write to us incase of any escalation/feedback/queries.
Customer Service
  • Whatsapp: 7428396005Send ‘Hi’ from your registered mobile number
  • 1860 120 55779:00 AM to 6:00 PM
    (Monday to Saturday)
  • service.helpdesk@axismaxlife.comPlease write to us incase of any escalation/feedback/queries.
NRI Helpdesk
  • +91 11 71025900, +91 11 61329950 (Available 24X7 Monday to Sunday)
  • nri.helpdesk@axismaxlife.comPlease write to us incase of any escalation/feedback/queries.