Also read: NPS National Pension Scheme
Types of Kisan Vikas Patra scheme accounts
- Single holder type: This type of KVP account is designed for individuals. An adult can open a Single Holder account for themselves or purchase a KVP certificate on behalf of a minor child.
- Joint A type: This KVP account is held by two adults together. The maturity proceeds of the KVP certificate are payable to both the holders jointly, or to the surviving account holder in case of the other's death.
- Joint B type: Similar to Joint A Type, this KVP account is also held by two adults. However, the crucial difference lies in the payout. In a Joint B Type account, the maturity amount is payable to either of the two account holders, or to the survivor.
Eligibility criteria for Kisan Vikas Patra scheme
Eligibility criteria for the Kisan Vikas Patra scheme depend on the following:
- Citizenship: Must be an Indian citizen.
- Age: Adults (18 years or above).
- Minor: Guardian can purchase KVP certificates on behalf of minors or those of unsound mind.
- Restrictions: Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) cannot invest in KVP.
How to get Kisan Vikas Patra certificate
The Kisan Vikas Patra (KVP) is a savings scheme offered by the Government of India. Here are the steps to get a KVP certificate:
A. Steps to get Kisan Vikas Patra offline
- Visit your nearest post office.
- Ask for the KVP application form (Form A) and fill the details required.
- If you are investing through an agent, they must complete Form A1U+002e.
- Provide a copy of an identity proof for the KYC process.
- Submit the completed forms and deposit the amount you want to invest.
- Once your documents are verified and the deposit is processed, you will receive your KVP certificate.
B. Steps to get Kisan Vikas Patra online
- Visit the India Post website.
- Choose Kisan Vikas Patra (KVP) and download Form A.
- Complete the form with your personal information, investment amount, payment method, and certificate type. Include nomination details and submit it to the post office along with the required KYC documents.
- After document verification, deposit the amount either in cash, through a pay order, a cheque, or a demand draft in the name of the postmaster.
- You will immediately receive the KVP certificate unless you pay by cheque or demand draft.
Also read: Senior Citizen Savings Scheme
Benefits of KVP Scheme
Benefits of the Kisan Vikas Patra (KVP) scheme include:
- Low barrier to entry
With a minimum investment of just Rs. 1,000 and no maximum limit, KVP is accessible to investors of every level. Whether you are starting with small, regular contributions or have a substantial sum to invest, KVP provides a space for everyone to grow their savings safely.
- Flexibility
Although intended for long-term holding, KVP does offer some flexibility. After a set lock-in period i.e., 2.5 years, you can prematurely withdraw your deposited amount, although certain penalties will apply.
- Taxation
Withdrawals made after the maturity of the Kisan Vikas Patra are not subject to Tax Deducted at Source (TDS). It is important to note that the KVP scheme does not qualify for any tax deductions specified under Section 80C.
- Loan against KVP certificate
Your KVP certificate is not just a savings scheme; it can also be used as collateral to get a loan. These loans often offered at lower interest rates, making them a cost-effective borrowing option.
Key differences between Kisan Vikas Patra (KVP) and Bajaj Finance Digital FD
Interest rate
|
7.5% (as of February 2024)
|
Up to 8.85% p.a.
|
Tenure
|
115 months
|
12 months to 60 months
|
Minimum investment
|
Rs. 1,000
|
Rs. 15,000
|
Maximum investment
|
No maximum limit
|
Rs. 3 crore
|
Security
|
Extremely safe due to government backing
|
AAA rated by financial agencies like CRISIL and ICRA
|
Also read: Post Office Saving Schemes
Documents required to get Kisan Vikas Patra certificate
Documents required to obtain a Kisan Vikas Patra (KVP) certificate typically include:
- KYC document (Aadhaar card/ PAN card/ Voter ID card/ Driving license/ Passport)
- Form A, you can get it from post office
- Form A1, if the application is made through an agent
Nomination
When applying for KVP certificate, you can nominate someone by filling out Form C. This ensures that if something happens to the KVP account holder, the nominee can receive the benefits.
Even if you did not nominate during the purchase, you still have the option to do it later before the certificate matures. Just complete Form C and submit it to the post office.
For certificates held by or on behalf of a minor, nominations are allowed. Any changes or cancellations to the nomination can be made using Form D.
How to transfer Kisan Vikas Patra account?
You can transfer your Kisan Vikas Patra (KVP) account from one post office to another or from one person to another.
Transfer from one post office to another: To transfer your KVP certificate from one post office to another, you need to submit a written request to the postmaster at either of the post offices.
Transfer from one person to another: You can transfer your KVP certificate to another person in specific situations, such as:
- Transfer between family members (e.g., from parent to child, spouse to spouse).
- Transfer to a nominee in case of the original holder's death.
- Transfer to an employee from the employer who purchased the certificate on their behalf.
To transfer the certificate, you'll typically need to submit a written application along with the original certificate and identification documents of both parties involved. The exact process and required documents may vary slightly depending on the specific circumstances of the transfer.
Kisan Vikas Patra (KVP) helpline
Customer care toll free number: 1800-266-6868
Conclusion
Kisan Vikas Patra presents a compelling option for disciplined investors seeking guaranteed returns and reliable wealth accumulation over time. Understanding its features, interest rates, and eligibility criteria can help you take informed decision.
Calculate your expected investment returns with the help of our investment calculators
