Investment Plans 199 views September 30, 2020

Kisan Vikas Patra

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.

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Meaning of Kisan Vikas Patra

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.

Benefits of Kisan Vikas Patra

There are some exclusive benefits of the KVP scheme and you can explore all of them before buying this plan.

Guaranteed Returns

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.

High Interest

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.

Low Risks

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.

Tax Deductions

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.

Flexibility of Investment

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.

Nomination

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.

Loan Against KVP

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.

Terms and Conditions

  1. There is a lock-in period of 30 months in this insurance plan.
  2. Making a withdrawal at an early stage is not allowed unless it is a court order or the investor dies.
  3. KVP Certificate is issued on the spot if the payment is done through cash.
  4. If you have made the payment through Cheque, Demand Draft, or Money Order then you will have to wait for the KVP certificate until the above-mentioned instruments are cleared.
  5. You will receive the Kisan Vikas Certificate, KVP Serial Number, Invested Amount, Maturity Date, and the Maturity Amount on the KVP Identity Slip.

Documents Required for Kisan Vikas Patra

  1. If your investment is above Rs.50000 then you will have to submit your PAN Card.
  2. If your investment is Rs.10 Lacs and above then you will have to submit income proofs like Salary Slips, Bank Statement, ITR Documents, and other supporting documents.

How your Investment is Doubled

You can see how the interest is added in the time span of 124 months if you make an investment of Rs.1000.

TimeAmount Repaid (Rs)
2.5 years but < 3 years1154
3 years but < 3.5 years1188
3.5 years but < 4 years1222
4 years but < 4.5 years1258
4.5 years but < 5 years1294
5 years but < 5.5 years1332
5.5 years but < 6 years1371
6 years but < 6.5 years1411
6.5 years but < 7 years1452
7 years but < 7.5 years1494
7.5 years but < 8 years1537
8 years but < 8.5 years1582
8.5 years < 9 years1628
9 years < 9.5 years1675
9.5 years < 10 years1724
10 years but before maturity1774
On maturity of the certificate2000

Details of Kisan Vikas Patra

ParticularsDetails
Minimum Investment AmountRs.1000
Maximum Investment AmountNo Limit
Minimum Age of Entry18 Years
Minimum Lock-in Period30 Months
Investing Period10 Years and 4 Months
Types of Certificate Available· Single Holder Type Certificate
· Joint ‘A’ Type Certificate
· Joint ‘B’ Type Certificate

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