written by | April 15, 2022

What Is Kisan Vikas Patra Scheme? Eligibility, Features, Interest Rates and Returns

Kisan Vikas Patra is an investment certification initiative. This scheme began in 1988 under the Indian Postal department. It is a government initiative to increase modest deposits in the nation to give participants a stable future. Kisan Vikas Patra is a lengthy saving strategy that allows people to invest. The primary reason for creating the KVP scheme was to motivate farmers to invest in saving for the long term. However, it is now available to everyone. You can obtain Kisan Vikas Patra certifications at any postal office in India.

Did you know?

The current interest rate for the Kisan Vikas Patra is calculated to be 6.9% for FY 2022. 

Learn About the KVP Scheme and How to Obtain Your Kisan Vikas Patra Online

What Is Kisan Vikas Patra?

Kisan Vikas Patra (KVP) is a scheme to stimulate long-term investment and consumer spending among the general public. It is appropriate for those hesitant to take risks, have excess funds and search for guaranteed profits. It doubles the investment with one investment one time in roughly ten years and four months if you purchase between the 1st of July 2021 and the 30th of September 2021. For example, a Kisan Vikas Patra for ₹10,000 will gain you a post maturity capital of ₹20,000. 

The least amount deposit is ₹1000, and there is no highest bound. To reduce the possibility of financial fraud, the government made PAN card evidence mandatory for assets above ₹50,000 in 2014. To invest ₹10 lakhs or more, you must provide proof of your earnings. It is a lower-risk savings system where you may store your funds securely over a certain time. Furthermore, one has to submit the Aadhar number to verify the account owner's identification.

Also Read: How Beneficial Is PM SVANidhi Scheme and What Is the Procedure to Avail It?

Types of Certificates Available 

Below are the different kinds of certificates accessible through KVP:

1. Single Holder Type Certificate

The post office issues this certificate to a specific individual for themselves or in a child's or minor's place.

2. Joint Type (A) Certificate

As the title implies, the post office issues such certification collectively to two people and the advantages are available to both the account owners and the successor.

3. Joint Type (B) Certificate

The postal services give such a type of certificate to two people simultaneously, and the bearer or the nominee is eligible to take the maturity amount.

Who Should Invest in the KVP Scheme?

Any Indian over 18 years of age can purchase a Kisan Vikas Patra from their local post office. It is especially enticing to rural India, who do not have a savings account. You could also purchase one for a child or collaborate with some other adults. Don't fail to include the minor's name, date of birth and the names of the parents or guardians. A foundation can also purchase one. However, a HUF or an NRI is not eligible.

KVP is a smart investment for risk-averse people who have extra cash that they may not need in the coming years. It all relies on your risk tolerance and objectives. People looking for tax-saving plans, for example, have superior alternatives such as PPF, National Saving Certificate and tax-saving banks' fixed deposit schemes. The Equity-linked Savings Program is available if you are willing to accept some risk. As a result, play to your economic capabilities.

Features and Benefits of Kisan Vikas Patra

KVP, being a government investment program, many regard this scheme as a safer investment alternative accessible in the marketplace. There are several more advantages of participating in Kisan Vikas Patra, and let's take a closer look.

1. Guaranteed Return

KVP, being a government-supported savings program, ensures a higher return on investment above a lengthy period. It implies an assurance that the account owner will obtain the accumulated wealth as a maturing reward after the program's lifetime.

2. Financial Protection

Kisan Vikas Patra is among the simplest investing techniques and is not vulnerable to market hazards. Investors may develop capital for a lengthy period and secure financial stability in the future by depositing at least ₹1000. KVP certifications have different values like ₹1000, ₹10, 000 and more. However, there is no limit to the maximum value of depositing.

3. Interest Rate

The Indian government sets the KVP interest rates and controls them periodically. The real interest rate of the KVP plan varies depending on the duration of the KVP selected at the date of acquisition. The present interest rate on KVP is 6.9 %, and the return doubles the invested money.

4. Tenure

The program provides investors with a duration of 10 years and four months. After the completion of the tenure, the purchaser's amount doubles. When the scheme's term expires, the account owner will be able to withdraw the funds. Furthermore, interests will build upon the collected sum until the account owner takes it.

5. Taxation

The KVP does not fall in the brackets of Section 80C tax exemption. As a result, the scheme's profits are subject to taxation. However, once the maturation time is over, the tax deducted at the source is deducted from the withdrawing sum.

6. Premature Withdrawal

Even though Kisan Vikas Patra has a lock-in period of two years and six months, you can withdraw the cash only after 124 months. There is no permission to withdraw the amount early under this scheme. The owner has permission to withdraw premature money under the circumstances like the account owner's sad death or a judge's order.

Also Read: What is GST Amnesty Scheme? GSTR-3B Late Fee Relief, Benefits, Eligibility, and Last Date

7. Loan Facility against KVP

One can obtain a secured loan using the Kisan Vikas Patra certification as security for a loan. Nevertheless, the interest rate on these types of loans is rather modest.

8. Nomination Facility

KVP provides a very basic and easy-to-use mechanism for nominating a nominee. The user only needs to pick up an application form from the postal service and fill it out completely. If the nominee is a child, the account owner must provide a birth document and provide the child's date of birth.

Kisan Vikas Patra Interest Rate

Kisan Vikas Patra's interest rate might fluctuate regularly depending on the Financial Authority's pronouncements. The current KVP rate of return is 6.9 % per year, which is effectively doubling your money in 124 months.

How KVP accrued Interest & doubles the Money – An Example 

Kisan Vikas Patra is a minimal risk investment strategy. The table below displays the profits on a ₹1000 deposit over time. 


Amount Repaid ()

2.5 years but < 3 years


3 years but < 3.5 years


3.5 years but < 4 years


4 years but < 4.5 years


4.5 years but < 5 years


5 years but < 5.5 years


5.5 years but < 6 years


6 years but < 6.5 years


6.5 years but < 7 years


7 years but < 7.5 years


7.5 years but < 8 years


8 years but < 8.5 years


8.5 years < 9 years


9 years < 9.5 years


9.5 years < 10 years


10 years but before maturity


On maturity of certificate


Steps to Invest in Kisan Vikas Patra and Documents Required

Investment in Kisan Vikas Patra is straightforward, as explained below.

  • Obtain the request form, Form A, and complete it with the required information.
  • Return the completed application to the postal service or bank.
  • If you invest in Kisan Vikas Patra through an agency, the agency must complete Form A1. These applications are available for download electronically.
  • The Know Your Customer (KYC) procedure is compulsory, and you must produce a photocopy of your identity and proof of address.
  • Make the payment when the documentation has been confirmed. You can pay in cash, a legally signed check, payment order or DD written in the postmaster's favour.
  • When you pay by check, pay order or DD, you will instantly receive your KVP certification. Keep this secure since you will require presenting it after maturity completion. The certificate is sent through email upon request.


Do invest if KVP appears to be a reasonable investment that aligns with your financial objectives. It is simple to access and administer, and the only thing you need is to have the money in hand and go to the local post office.
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Q: Can NRIs purchase Kisan Vikas Patra?


No,NRIs do not have the permission to buy KVP certificates.

Q: How can I move my KVP account?


You can move your KVP from one Postal Service to the next or from one individual to another. You have to fill and submit a series of paperwork to the Post's Director-General in moving from one Postal Service to the other. In the event of a shift from one individual to the other, you must submit a petition referencing the same.

Q: Can I withdraw Kisan Vikas Patra at any Postal Service?


KVP certificates are easily redeemable at the purchaser's post office, and the purchaser can also encash them at other postal offices in a crisis. Nevertheless, at the point of encashment, the purchaser must present the identification slip and the Kisan Vikas Patra certificate.

Q: Is it possible for the Postal Service to provide a duplicate Kisan Vikas Patra?


If a KVP certificate is missing, disfigured, damaged or stolen, the purchaser can request a replica of the KVP certification. To do so, the owner must present the identification slip they give when issuing the initial certificate.

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