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Kisan Vikas Patra (KVP)




This scheme was introduced by Indian post office in 1988 as a small saving scheme. This is long term saving scheme initially introduced only for the farmers but now it is available for everyone.


Who can buy KVP?

1. Any Indian citizen who is above 18 year can buy.

2. A minor above 10 years also can buy.

3. An adult on behalf of minor.

4. Parent or guardian on behalf of a person of unsound mind

5. NRI and HUF (Hindu Undivided Family) are not eligible but trust can buy.


Where you can buy KVP?

It is available at the post offices or the selected bank branches. If you want to buy from the bank then you can ask for the availability at the nearby bank branch.


How to invest in KVP?

The investment process is very simple.

· Take the application form for KVP from the post office (i.e. Form1)

· Fill all the relevant details as per the requirement of the post office.

· If you want to invest through agents then another form also needs to be filled by the agent (i.e. Form A1) [agent will fill the form by itself, no need to worry about it]

· Along with the for you are required to submit one of the identity proofs issued by the government of India (like AADHAR card, voter ID, PAN, passport etc)

· Upon verification of the documents KVP certificate of requisite amount will be issued to you.

· The certificate from the post office is in the form of passbook.


What is the minimum and maximum limit to invest in KVP scheme?

The minimum amount needs to invest in KVP is 1000 and there is no maximum limit. PAN card is mandatory for the investment above 50000 and for the investment above 10 lakhs income proof may be asked by the issuer.


Can in invest through online process in KVP?

You cannot invest online in this scheme only you can download the form from the internet rather to take from the post office or bank branch. The link to download is here for post office https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/AccountopeningCertificate.pdf

After you download the form, fill all the information and submit to the post office. After the verification certificate will be issued to you.

If you want to get the certificate on your email you can get it by providing your email.

What is the tenure of the KVP?

The KVP certificate is for 124 months (10 years 4 month) for this quarter as per the interest rate of 6.9 %. The amount invested will get doubled in this period. The lock in period is 30 months. Before lock-in period the cash withdrawal is not allowed unless there is special case like account holder demise or by the court order.


Types of KVP certificates:

Single Holder Type Certificate: This type of certificate is issued to an adult for himself or on behalf of a minor.

Joint ‘A’ Type Certificate: This type of certificate is issued jointly to two adults, payable to both the holders jointly or to the survivor.

Joint ‘B’ Type Certificate: This type of certificate is issued jointly to two adults, payable to either of the holders or to the survivor.


What is the current interest rate at the KVP?

The current interest rate is 6.9 % for 2020(April-June) quarter and maturity time is 124 months. Interest rate is announced for every quarter by the government.

Below is the interest rate list Quarter(Q) wise from 2015 to till date

Q1 (quarter 1): April-June; Q2: July-September; Q3: October-December; Q4: January- March

What are the tax benefits of KVP?

There is no tax benefit in this scheme and the interest amount you received after maturity is completely taxable. However, TDS (tax deducted at source) is exempted from withdrawals.


What is the transfer facility in KVP scheme?

KVP can be transferred from one post office to another post office upon the request of the owner at the post office. You need to fill the form of transfer and submit to the post office from where you bought the certificate. Download the form from below link

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/NC-32%20Application%20for%20transfer%20of%20Savings%20Certificates.pdf

KVP can be transferred from one person to another by the same process and submitting the form to the post master under certain conditions like

· Transfer from the deceased to his/her heir.

· From one owner to combined owner.

· From the group of owners to the one individual.

· From the owner to any other individual by the court order.

Form to transfer the certificate from one person to another can be downloaded from here


Is there any nomination facility available for this scheme?

Yes, it is available. The owner (single or joint) can nominate any individual who in the case of sudden demise will be entitled to receive the amount upon maturity. At the time buying of the KVP certificate this facility is free. You can change the nominee at any number of times later by paying an amount of 20 rupee.

How to withdraw the amount of KVP?

You can withdraw the amount upon maturity by providing the identity slip which was issued at the time of buying KVP. The amount can take from any post office around the India. However, you can get it easily from the branch where you bought but if you want to get it from another branch of post office then you have to follow some instructions and it will take some time because they need to verify from the post office you bought.

You can have premature withdrawal also but only in special cases like demise of the owner or by the court order. Still you need to complete the 30 months lock-in period.

How to get the loan against KVP?

Loan against the certificate can be availed under following conditions:

1. Loan will be provided to the owner of the certificate only.

2. Interest rate is decided by the bank and it keeps on changing. Processing fee can also be charged depending upon bank process.

3. Loan amount will be decided as per the amount invested in the KVP scheme.

4. The loan amount must be repaid before the maturity of the KVP.

What will happen if the amount is not withdrawn after the maturity of Kisan Vikas Patra KVP?

If the amount is not withdrawn after the completion of maturity period also then it will keep on earning the post office or banks saving interest. If the balance is taken out within one month after the maturity date, no interest will be paid.


What is Kisan Vikas Patra (KVP) identity slip?

This the the slip which is issued to the owner of the Kisan Vikas Patra at the time of buying. This slip includes name, serial number, amount invested and to be received upon maturity, maturity date. At the time of withdrawal on maturity you need to present this slip so keep it safe.


What will happen if you had lost the KVP certificate?

If the Kisan Vikas Patra is damaged, destroyed or lost you can apply for the duplicate KVP by filling the form. Download the form from the below link

Note: all the forms link for download is provided from the Indian Post office.





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