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Investment Plans 1537 views September 30, 2020
Nowadays, most of the individuals look for a risk-free investment so that they can multiply their funds. Indian Post Office is the best and most trusted institution for making the investment. As it is a government body so it is trusted by many individuals. Therefore, the Kisan Vikas Patra is an investment plan that is introduced by the India Post Office. In this investment plan, you can double your investment in a time span of 10 years and 4 months. Suppose you have invested a Sum of Rs.1 Lac then you will receive a Sum of Rs.2 Lacs at the time of maturity. So let’s explore the key features and benefits of this investment plan.
Table of Contents
This plan was introduced by the Post Office of India to encourage long-term savings for the individuals. There is a lock-in period of 124 months in this investment plan if you have purchased this plan after the 1st of April 2020. Rs.1000 is the minimum investment amount for this plan and there is no maximum amount. You can invest any sum of money in this plan. Your investment Sum of money will be doubled at the time of maturity after 124 months.
There are some exclusive benefits of the KVP scheme and you can explore all of them before buying this plan.
This investment plan gives you a guaranteed return on your investment. Your money is in the safe hands and you will get twice the money invested at the time of maturity.
Post Office offers a high rate of interest on the investment and therefore your money is doubled after the investment term of 10 years and 4 months. On the other hand, the interest rate is changed by the government after a certain span of time.
This investment plan is not open to the market risks therefore your sum of money will be doubled after maturity. Once the tenure ends, you will receive the promised sum of money. So, you must be not worried about the market risks and market fluctuations in this investment plan.
You are allowed to take tax deductions under Section 80C of the Income Tax Act. There will be no Tax Deduction at Source if you withdraw the money after the date of maturity.
The Kisan Vikas Patra Scheme accepts the investment starting from Rs.1000 and there is no maximum limit for investment. The denominations available for investment are Rs.1000, Rs.5000, Rs.10000, and Rs.50000. The denomination of Rs.50000 is only available at the Head Post Office of the City.
You can nominate any person in this scheme who will be entitled to receive the Sum of Money at the time of maturity in you are no more.
In case of an emergency, you can keep this certificate as collateral and borrow a loan from banks and NBFCs. The interest rate for the secured loan is usually less than the unsecured loans.
You can see how the interest is added in the time span of 124 months if you make an investment of Rs.1000.
Time | Amount Repaid (Rs) |
---|---|
2.5 years but < 3 years | 1154 |
3 years but < 3.5 years | 1188 |
3.5 years but < 4 years | 1222 |
4 years but < 4.5 years | 1258 |
4.5 years but < 5 years | 1294 |
5 years but < 5.5 years | 1332 |
5.5 years but < 6 years | 1371 |
6 years but < 6.5 years | 1411 |
6.5 years but < 7 years | 1452 |
7 years but < 7.5 years | 1494 |
7.5 years but < 8 years | 1537 |
8 years but < 8.5 years | 1582 |
8.5 years < 9 years | 1628 |
9 years < 9.5 years | 1675 |
9.5 years < 10 years | 1724 |
10 years but before maturity | 1774 |
On maturity of the certificate | 2000 |
Particulars | Details |
---|---|
Minimum Investment Amount | Rs.1000 |
Maximum Investment Amount | No Limit |
Minimum Age of Entry | 18 Years |
Minimum Lock-in Period | 30 Months |
Investing Period | 10 Years and 4 Months |
Types of Certificate Available | · Single Holder Type Certificate · Joint ‘A’ Type Certificate · Joint ‘B’ Type Certificate |