Kisan Vikas Patra is also known as KVP. It is an investment scheme through which all Indian citizens can double their investment within 124 months fix time. People can participate in this scheme through any Post Office or bank.
Then deposit a minimum of 1000 rupees to unlimited savings through this scheme. The government gives a fixed interest ( almost 6.7%) on this investment and in almost 124 months investment amount becomes double.
Kisan Vikas Patra Scheme is a central government scheme relaunched by PM Modi in 2014. The main objective of this scheme is to influence people for savings. The government provides a business loan to the needy Industrialist at higher interest rates. They do business and return money to the bank or post office.
Benefits Kisan Vikas Patra
It is one of the best investment scheme for citizens. Below is a complete list of of its benefits:
- Kisan Vikas Patra is a completely risk-free investment plan. It is more reliable because the government is the mediator in this saving investment plan.
- You can withdraw money from this KVP account after one year at the normal interest rate offer by the bank.
- If you want to withdraw all money after 2.5 years in the bank will provide you 6.7 % interest on your investment.
You must be want to know about the limitations of this scheme. Actually there are so many conditions on which you can’t apply for this wonderful risk-free investment.
- The age of the candidate should be min 10 years and a max of 40 years.
- Should be an Indian citizen. No NRI is applicable for this scheme.
- The candidate should have valid Identity Proof, Address Proof, and age proof documents.
KVP Account Types
- Single Owner Account
- Joint Account Type A
- Joint Account Type B
Single account can be opened by any adult whose age is between 18 to 40 years. Any candidate whose age is minimum 10 year also can apply for this single account with his own name. For this type of account he has to provide his birth certificate.
Joint account type a can be open with two people they are husband and wife. After the maturity period this amount can be paid to any of the survival. Suppose till maturity period anyone husband or wife died. Then the survival person will get this amount.
Joint account type b can be opened by 2 to citizens of India. They can be husband or wife or two brothers or two friends or any other two persons. Hindi situation the amount it after maturity period will be e provided to the account holders in conjunction form.
Required Documents For Kisan Vikas Patra
If you want to apply for this KVP account then you have to arrange the documents given below. All documents are related to address proof of identity proof of age proof and citizenship proof.
- Aadhar Card
- Pen Card
- Birth Certificate
- Residence certificate
How to Apply For Kisan Vikas Patra
Real friends there are two method through which you can apply in this amazing risk free investment scheme. Either you can go for online procedure or offline procedure as per your convenience.
I am telling you both process here. But my personal opinion is to go for offline procedure as it looks like more realistic.
1. Online Procedure
- Open the Indian Post Office or Bank website and search the KVP application form submission link.
- Fill out the form with all details.
- Upload scanned documents with your form.
- Make payment
- Submit the KVP form.
- Take Final Print out from the website. Also, you will get an email from the concerned department with your KVP account detail.
2. Offline Procedure
- Go to the bank or post office.
- Take the KVP form.
- Fill Form details.
- Attach Documents with KVP Form.
- Submit Form to the Bank and Post Office.
- Take Kisan Vikas Patra’s receipt and other necessary account detail.
Kisan Vikas Patra Interest Rates
Interest rates of Kisan Vikas Patra are decided by the central government and reserve bank of India. Likewise, Interest rates may be different for different assessment years. Currently in 2021 interest rate of Kisan Vikas Patra 6.7%.
Last year in 2020 interest rate of birth different and in the coming year 2022 interest rate will be different or it may be same as per the guidelines of Reserve Bank of India and Central Government.
KVP Maturity Period
The maturity period of the KVP account is 124 months as per the current assessment year 2021. 6.7% fixed interest rate is decided by the Reserve Bank of India. As per this interest rate and given time period investment amount will be double in 124 months.
Maturity period is decided by the interest rate calculation. Current assessment year interest rate is 6.7 %. Show the maturity period is when 24 months. Suppose in the next assessment year 2022 the interest rate become 9%. Then the maturity period will become less than 24 months.
Tax Benefit of Kisan Vikas Patra
KVP income does not provide any tax benefit to its investors. If you will invest your saving through this KVP investment scheme then you have to pay tax as per income tax department guidelines. This income is not tax-free.
Also, Read: Loan Schemes For Farmers In India.
How To Encash Kisan Vikas Patra After Maturity?
If your maturity period is complete, you can encash your KVP. For doing this you have to record your post office or bank where you open this account and purchased KVP.
They will ask for a written application regarding this or they will give you a withdrawal form for withdrawal money. Just fill that form correctly and submit it to the concerned person.
He will check all details and will proceed your application. If you are trying to get money in the form of check, then receive your check and deposit in bank.
If you want to get your directly in bank then all amount will be credited to your account as per the banking procedure.