The Kisan Vikas Patra is an innovative certificate scheme offered by the Indian post office. It is known to double a one-time investment over a period of about 9 years & 10 months i.e. 118 months. For instance, a Kisan Vikas Patra for ₹15000 will get you a total of ₹30,000 postmaturity. The Kisan Vikas Patra was introduced by the India Post as a small saving certificate scheme in the year 1988. The primary objective of this scheme is to encourage long-term financial investment in citizens. According to the 2014 amendment of the KVP scheme, the tenure is 118 months. The minimum investment that can be made is ₹1000 and there is no restriction on the upper limit. If you invest a sum of money today, you will get double the amount after the elapse of 118 months. It was started as a means to enable farmers to save long-term, and hence it got its name. Now anyone can apply to the scheme.
⇒ Any Indian citizen above age 18. NRIs can not avail of this scheme.
⇒ A parent/ guardian for a minor
⇒ Jointly with another adult
⇒ A Trust but not a HUF
KVP is a good choice if you are a risk-averse individual or have surplus money that you may not need in the near future. The decision of whether you should take a KVP depends on your risk profile and money goals. For instance, if tax-saving is your current goal, schemes like Public Provident Fund, National Saving Certificates, and bank FD Schemes can be a better option for you.
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Market fluctuations do not influence the returns of this scheme. You will surely get the sum you are aiming for. Since this scheme was initially started for farmers, the primary objective was to ensure that they save for their grey days without being scared of risks of losing the money they already have.
Since the KVP is available in denominations as small as ₹100 and a minimum investment fo just ₹1000, anyone can apply for this scheme without having to move their budget much. This makes it easy to afford for people who have little money on their hands and still want to save for their secure future.
Your KVP certificate can also be used as collateral to avail secured loans from financial institutions. The benefit of doing so is that the interest rate reduces considerably when compared against unsecured loans.
It is fairly simple to invest in the Kisan Vikas Patra. You can follow the below steps-
⇒ Fill the application form (Form-A) [Available online] and submit it duly filled to the Post Office.
⇒ If your investment in KVP is via an agent, then the agent needs to fill Form-A1.
⇒ Complete the Know Your Customer (KYC) process since it is mandatory wherein you need to show proof of identity and submit a copy (e.g. PAN, Aadhaar Card, Voter ID, Driving License or Passport)
⇒ After verification and deposit, you will be issued a KVP certificate.
⇒ You need to keep this certificate safe since you will have to submit this when the scheme matures. You can send a request for sending you the certificate by email as well.
Overall, the Kisan Vikas Patra is undoubtedly a worthy investment if it matches your money goals. And if it does, you should invest immediately. If you have any questions regarding the Kisan Vikas Patra or personal finance in general, let us know in the comment section below. Until next time!
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