Kisan Vikas Patra Yojana 2023: check eligibility, interest rates, and more

Kisan Vikas Patra is an Indian government scheme which was launched by the Indian government. It was initially started to help farmers but now anyone can leverage its advantages

Kisan Vikas Patra (KVP) is a certificate scheme launched by the Indian government in 1988. The scheme aims to encourage savings in the country for the secure future of the investors. This scheme doubles the one-time investment in a period of 9.5 years approximately. For example, if you deposit Rs 5,000, you will get Rs 10,000 post-maturity.

The scheme was initially launched for farmers, as it is reflected in its name, but now, whoever meets the eligibility requirement can apply for the Kisan Vikas Patra Yojana scheme. Individuals can obtain the certificate of the scheme from any India Post office branch or any public sector bank.

To prevent any possibility of money laundering, the government of India made it mandatory to add PAN card proof for investments above Rs 50,000. To deposit money above Rs 10 lakhs, one needs to submit income proofs (salary slips, ITR documents, bank statements, etc.).

What are the documents required for Kisan Vikas Patra?

To avail the benefits of Kisan Vikas Patra, here are the documents required for the Kisan Vikas Patra:

Form A

Form A1 (if the documents are submitted via an agent)

KYC documents (Aadhaar card/Passport/PAN card/Voter ID) 

You will receive a KVP certificate once you submit all the above-mentioned documents.

What is the eligibility of KVP?

Here's the eligibility requirement for Kisan Vikas Patra:

The KVP applicant must be an adult and an Indian resident of above 18 years.

The applicant can apply via their name or on behalf of a minor. 

Trusts are eligible for KVP, while Hindu Undivided Family (HUF) and NRI are not eligible to invest in KVP.

Kisan Vikas Patra: Interest

The current interest rate of Kisan Vikas Patra is 7.5 per cent, and the maturity period has been set at a maximum of 120 months.

Kisan Vikas Patra: Features and Benefits

Here are some of the features and benefits of Kisan Vikas Patra:

Guaranteed Returns: Irrespective of market fluctuations, the investor will get a guaranteed return.

Capital Protection: The Kisan Vikas Patra is a safe and secure investment, which is not subject to market risks. Everyone will get the investment and gain after maturity.

Interest and Maturity: The current interest rate is 7.5 per cent, and the maturity period for the scheme is 115 months. 

Taxation: The amount is not taxable under 80C deductions. However, Tax deducted at source is exempt from withdrawal post-maturity.

Affordable scheme: The Kisan Vikas Patra is available in denominations of Rs 1,000, 5,000, 10,000 and also Rs 50,000 of investment. 

Loan against KVP certificate: You can also avail of a collateral and security loan against a KVP certificate, and the loans for such loans are comparatively cheaper. 

How to invest in Kisan Vikas Patra?

Here are the steps to invest in Kisan Vikas Patra:

Step 1: Collect Form A and fill in the required information.

Step 2: Submit the filled form to the post office or bank.

Step 3: If the investment in KVP is through an agent, then the agent also needs to submit Form A1.

Step 4: The Know Your Customer (KYC) process is mandatory, and one needs to submit the ID and address proofs.

Step 5: After completing the KYC process, one needs to make the deposit by cash. The investor can also issue a pay order, demand draft or cheque in favour of the postmaster. 

Step 6: The user will get the KVP certificate immediately except if the payment is made through cheque, pay order, or demand draft.