The Kisan Vikas Patra (KVP) is a popular government-backed investment scheme that offers guaranteed returns. With its attractive interest rate and low-risk profile, KVP is an excellent option for those seeking safe and secure investments.
Key Features of KVP
Guaranteed Returns- KVP offers a guaranteed return of 101%, meaning your investment will double in 115 months.
Flexible Investment- You can start investing with a minimum of ₹1,000 and there is no maximum limit.
High Interest Rate- The current interest rate is 7.5% per annum, which is revised every three months.
Joint Accounts- You can open a joint account with up to three individuals.
Nomination Facility-You can nominate a beneficiary to receive the maturity proceeds.
Early Withdrawal- You can withdraw your investment after 2 years and 6 months, subject to certain conditions.
Extra Benefit
Maturity Period- The maturity period for KVP is currently 115 months (9 years and 7 months).
Interest Payment- Interest is compounded annually and paid on maturity.
Tax Implications- Interest earned on KVP is generally taxable. However, consult with a tax advisor for specific details.
Loan Against Deposits- You can avail a loan against your KVP investment after 2 years and 6 months.
Transferability- KVP certificates are transferable. You can transfer ownership to another person.
Premature Withdrawal- While premature withdrawal is possible after 2 years and 6 months, it may attract a penalty.
How To Apply
Visit a Post Office-Locate your nearest post office branch.
Obtain the Application Form- Request the KVP application form (Form A) from the post office. You can also download it online from the India Post website.
Fill in the Form- Complete the application form with accurate information, including your personal details, investment amount, and nominee information.
Submit Required Documents- Provide the necessary documents, such as your Aadhaar card, PAN card, address proof, and passport-sized photograph.
Make the Deposit- Pay the desired investment amount in cash, cheque, or demand draft.
Receive the KVP Certificate- Once your application is approved and the payment is verified, you will receive a KVP certificate.
The Kisan Vikas Patra is a reliable and profitable investment option that offers a secure and guaranteed return. With its attractive features and government backing, KVP is an excellent choice for individuals looking to grow their wealth.