Kisan Vikas Patra

Kisan Vikas Patra

Launched by India Post in 1988, Kisan Vikas Patra was initially a scheme small saving scheme. The scheme was originally launched exclusively for farmers; nevertheless, the scheme is now applicable to all Indian citizens.

The objective of Kisan Vikas Patra is to encourage and promote financial discipline and its importance in people. The tenure of the scheme is applicable for 118 months, i.e., 9 years and 10 months. The minimum investment scheme available under this scheme is Rs. 1000; moreover, there is no upper limit applied. In order to eliminate any possible events of money laundering, in 2014, the government compulsorily demands PAN card proof for the investment of over Rs. 50,000. To invest anything more than Rs. 10 lac, applicants must submit valid income proofs, such as salary slips, bank account statements, and ITR documents.

Eligibility of Kisan Vikas Patra

Under this scheme, any Indian citizen who is over 18 years old can apply for the Kisan Vikas Patra Scheme at the nearest post office. An applicant can buy one for a minor or together with another adult member. Kisan Vikas Patra is a great option for risk-averse people with plenty of money.

Benefits of Kisan Vikas Patra

In spite of the current market situation, a guaranteed scheme is made available for applicants.

The scheme is the safest measure of capital protection and investment. At the end of the tenure, gains are guaranteed. The current rate of interest for the scheme is 7.7%.

The scheme does not fall under the category of 80C deductions, and the returns are entirely taxable. 

The lock-period is a minimum of 30 months; thus, premature withdrawal is applicable. Moreover, applicants can avail nomination services, Kisan Vikas Patra certificate issuance, and loan against the certificate.

Should you invest in Kisan Vikar Patra?

While there are innumerable investment schemes out there for you to choose from, choosing therefore ends up becoming the harder thing to do. With schemes bombarding one with high-end investment jargon, investors are often browbeaten into opting for schemes simply on the premise that that would be the surest way to grow their money safely.

One would therefore tend to have the same confusion around the Kisan Vikar Patra, however, things are a bit different with this one though.

The first point of safety that comes with Kisan Vikas Patra is the fact that one can avail this scheme from a post office. This makes the scheme a very feasible option, especially for the rural populace who do not even hold bank accounts.

The Kisan Vikas Patra is a low risk savings option which is suitable to those individuals who are rise-averse financially. Those individuals who have higher stakes involved with their surplus and would rather aim to play safe with their money can opt for this scheme.

Apart from those individuals, even those who are above the age of 18 and wish to consider investing but do not know a safe option to choose from, can opt for the KVP post office scheme.

ParametersKVPFD
InvestmentsMinimum investment of Rs.1000 required whereas there is no capping on maximum investmentMinimum- Rs.50 | Maximum- Not Limited
Rate of Interest6.90%Differs from bank to bank. Highest ROI is offered by IDFC bank i.e, 8.50%
Maturity10 years and 4 months10 years. However, subscribers can withdraw money after 7 days from the date of investment
Tax TreatmentReturns on KVP are taxableTax saver FDs are tax exempted for up to Rs.1.5 Lakh under Section 80(c)
Lock-in periodsLock-in period of 2 and a half yearsNo lock-in period. The tenure of Fixed deposits range from 7 days to 10 years
Premature WithdrawalsWithdrawals are allowed before maturityMoney can be withdrawn as and when the subscriber wants, after 7 days
KVP V/s Fixed Deposit
ParametersKVPNSC
InvestmentsMinimum- Rs.1000Minimum- Rs.100
 Maximum- No limitMaximum- Rs.1,50,000
Rate of Interest6.9% per annum6.8% per annum
Taxation PolicyReturns on KVP are taxableEnjoys tax benefits and exemption under Section 80(c)
LiquidityLock-in period of 2.6 years onlyLock-in period of 5 or 10 years
Premature WithdrawalWithdrawals are allowed before maturityWithdrawals before maturity are very difficult and restricted
LoansCan be used as a guarantee to take loans for housing etcCan be used as a guarantee to take loans for housing etc
KVP V/s NSC

What do you need to avail the scheme?

  1. Form A must be duly submitted to an India Post Office branch or other specific banks
  2. Form A1, if the application is extended through an agent
  3. KYC documents like Aadhaar Card, PAN card, Passport, Voter’s  ID, Driving license, or any document that serves as an ID proof

Once the applicant provides these documents to the Post office, applicant would be offered with a KVP certificate. If in any case the Kisan Vikas Patra gets damaged or lost, the scheme holder can apply for a copy of the same. Application of the duplicate copy would be through the same institution where the certification was availed for the first time.

In conclusion

Getting the best of government schemes may go a long way in safe investment, which will offer guaranteed returns. Investments are a great way of not only safeguarding money but also ensuring that you get the best out of money just sitting idle. Compounding is a slow but sure fire way of increasing the jingle in your vaults and if there happens to be the surety offered by government, there’s nothing better than that.

To know more about the Kisan Vikas Patra, click here.

One thought on “Kisan Vikas Patra”

Leave a Reply

Your email address will not be published. Required fields are marked *

Similar Yojanas

How to open Aadhar Card Agency from CSC in 2020?

View Details

Stree Shakti Package Scheme

View Details

Digi Dhan Vyapari Yojana

View Details

Lucky Grahak Yojana

View Details

SMAM Kisan Yojana

View Details

PAHAL – direct benefit transfer for LPG (dbtl)

View Details

Nikshay Poshan Yojana

View Details

NITI Aayog (National Institution for Transforming India)

View Details

Namami Gange Yojana

View Details

Govt. Schemes for Women of India | Sarkari Yojana

View Details

Startup India Scheme

View Details

One Rank One Pension Scheme (OROP)

View Details

Smart City Mission

View Details

Integrated Power Development Scheme (IPDS)

View Details

DigiLocker

View Details

Swades Skill Card Scheme

View Details

Satyabhama – Science and Technology Yojana for Aatmanirbhar Bharat in Mining Advancement

View Details

Affordable Rental Housing Complex (ARHC) Scheme

View Details

Tree Plantation Campaign (Vriksharopan Abhiyan) 2020

View Details

Jal Jeevan Hariyali Abhiyan

View Details

Swachh Survekshan 2021

View Details

Udyam Registration Online Portal

View Details

Tamil Nadu Young Advocates Monthly Allowance Scheme 2020

View Details

Solar Inverter Charger Scheme 2020 Apply

View Details

SERB Accelerate Vigyan Scheme

View Details

Atmanirbhar Bharat App Innovation Challenge

View Details

National Scholarship Portal 2020

View Details

TULIP internship 2020: AICTE urban learning

View Details

Food Safety Mitra Scheme

View Details

Vande Bharat Mission

View Details

FM Nirmala Sitharaman announces details of the relief package.

View Details

Unified Package Insurance Scheme (UPIS)

View Details

Weather Based Crop Insurance Scheme (WBCIS)

View Details

Coconut Palm Insurance Scheme (CPIS)

View Details

Pradhan Mantri Dhan Laxmi Yojana

View Details

Arogya Setu App

View Details

Vivad se Vishwas Scheme

View Details

Rahat Package

View Details

Sukanya Samriddhi Yojana

View Details

Shramev Jayate Yojana

View Details

Passport Seva Project

View Details

CSC Digital Seva Portal – All Links, Check your CSC Status, Bank Mitra Services

View Details

India announces Economic Support of 1.7 Lakh Crore in the wake of the Corona Crisis

View Details

PM Ujjwala Yojana – New List 2020

View Details

SWAYAM – An education initiative by the government

View Details

National Viral Hepatitis Surveillance Programme

View Details

National Programme for the Health Care for the Elderly

View Details

Support to Training and Employment Programme for Women

View Details

Coronavirus – outbreak in China and Public Health Response

View Details

Market Development Scheme

View Details

Rejuvenation, Modernization and Technology Upgradation of the Coir Industry – REMOT

View Details

ROSHNI – a skill development scheme for the Tribals

View Details

Sansad Adarsh Gram Yojana

View Details

The Shyama Prasad Mukherji Rurban Mission (SPMRM)

View Details

Mahatma Gandhi National Rural Employment Guarantee Scheme

View Details

Sampoorna Gramin Rozgaar Yojana (SGRY) – A Hope for those in the Rural Areas

View Details

Training of Rural Youth for Self-Employment (TRYSEM)

View Details

National Watershed Project for Rain fed Areas – NWDPRA

View Details

Rainfed Area Development Programme (RADP)

View Details

Agriculture Contingency Plan

View Details

Prerna – a Marketing Scheme

View Details

NISHTHA scheme

View Details

National Mission for a Green India

View Details

Self Employment Lending Schemes- Credit Line 2-Term Loan Scheme

View Details

Self Employment Lending Schemes- Credit Line 1-Term Loan Scheme

View Details

Pre-Matric Scholarship Scheme 2018 for Minorities

View Details

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME)

View Details

Enhancement of Competitiveness in the Indian Capital Goods Sector

View Details

National Urban Livelihoods Mission

View Details

National Social Assistance Program

View Details

National Scheme of Incentives to Girls for Secondary Education

View Details

Suryamitra Skill Development Program

View Details

Lean Manufacturing Competitiveness for MSMEs

View Details

Coir Vikas Yojana (CVY)

View Details

Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)

View Details

Mission Indradhanush

View Details

Ujwal Bharat Scheme

View Details

National AYUSH Mission

View Details

Midday Meal Scheme

View Details

Deendayal Disabled Rehabilitation Scheme

View Details

Solar Charkha Mission

View Details

Off-grid and Decentralized Solar Photovoltaic Applications Scheme

View Details

Janani Shishu Suraksha Karyakram

View Details

Innovation in Science Pursuit Research (INSPIRE) Scholarship Scheme

View Details

National Sports Talent Search Scheme

View Details

National Livestock Mission

View Details

The 4E – End to End Energy Efficiency scheme

View Details

Extramural Research Grant

View Details

Dairy Entrepreneurship Development Scheme – DED

View Details

Rashtriya Uchchtar Shiksha Abhiyan

View Details

BIG Scheme

View Details

Samagra Shiksha Abhiyan

View Details

Stree Swabhiman Yojana

View Details

Marketing Assistance Scheme

View Details

Scheme of Fund for Regeneration of Traditional Industries

View Details

Make in India Scheme

View Details

UMMID Initiative

View Details

Kishore Vaigyanik Protsahan Yojana

View Details

Bank Credit Facilitation Scheme

View Details

Stand Up India Scheme for Women Entrepreneurs

View Details

The UJALA Yojana

View Details

HRIDAY Yojana

View Details

Ujwal DISCOM Assurance Yojana (UDAY)

View Details

Atal Mission for Rejuvenation and Urban Transformation Yojana (AMRUT)

View Details

Electricity Subsidy Yojana 2019

View Details

Interest Deduction on Housing Loans Raised to Rs. 3.5 Lakh for 1st Time Homebuyers

View Details

Ujjwala Sanitary Napkins Initiative for Women Hygiene & Employment by Central Govt.

View Details

Kusum Solar Pump Yojana 2019

View Details

Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYAS)

View Details

Jal Shakti Abhiyan – National Water Conservation Scheme Launched by Central Govt.

View Details

Deen Dayal Upadhyaya Grameen Kaushalya Yojana

View Details

Balika Samridhi Yojana

View Details

Rashtriya Madhyamik Shiksha Abhiyan (Integrated)

View Details