Kisan Vikas Patra (KVP) was introduced by India Post in 1988 as a savings scheme primarily for farmers. It allowed farmers to double their money through risk-free investment. Later, the scheme was opened to everyone, making it accessible to all citizens.
KVP is a small savings scheme where the government revises the interest rate every three months. The scheme guarantees that the invested amount doubles within a fixed period. Additionally, there is no limit on the number of Kisan Vikas Patras an individual can open. Let’s explore the details of this scheme further.
Who Can Avail the Benefits of KVP?
According to the official India Post website, any adult can invest in Kisan Vikas Patra (KVP). Three adults can also jointly invest in it by opening a joint account. Additionally, guardians can invest on behalf of a minor or a mentally ill person. Minors aged 10 years and above can open an account in their name and start investing in this scheme.
How to Apply for KVP?
Step 1: Fill out the KVP application form accurately and submit it to a post office or bank.
Step 2: Complete the mandatory KYC process by submitting ID and address proof (PAN, Aadhaar, Voter ID, Driver’s License, or Passport).
Step 3: Once your documents are verified, deposit the investment amount. You can pay by cash, check, or demand draft.
Step 4: If you pay in cash, you will receive the KVP certificate immediately. Keep this certificate safe, as you will need it at maturity to claim your money.
How Long Does It Take for Money to Double?
Currently, Kisan Vikas Patra offers an annual compound interest rate of 7.5%. At this rate, your money doubles in 115 months (9 years and 7 months).
You can invest a minimum of ₹1,000 in this scheme, and there is no maximum limit. The account can also be transferred from one person to another in special circumstances.