What is KVP (Kisan Vikas Patra)

Kisan Vikas Patra is a small savings scheme offered by India Post.  The primary objective of the scheme is to encourage long term savings.

The scheme works like a bank FD where you invest an initial amount for a stipulated number of months. Interest accrues on this amount and it paid at the time of maturity.

The plan assures guaranteed returns at the end of the tenure. 

KVP - Kisan Vikas Patra Highlights

• Initial investment amount starts from Rs.1000 and in multiples of Rs.100 thereof
• The total plan tenure is 124 months (10 years and 4 months)
• Premature withdrawal is allowed after 2 and a half years, subject to certain conditions
• KVP certificates can be purchased at your nearest Post Office
• The latest interest rate on KVP is at 6.9% per annum

Who can purchase the KVP?

It can be purchased by – 

• An individual as a single holder
• Joint ‘A’ Type Certificate: This is given to two adults jointly and is payable to both of them or to the survivor.
• Joint ‘B’ Type Certificate: This is issued jointly to two adults, payable to either of the holders or to the survivor.
• Minors above the age of 10, through their legal guardian

Documents required to buy a KVP – Kisan Vikas Patra

• KYC Documents
• Duly filled KVP Form
• Address Proof
• Date of Birth Proof

Points to note: 

Remember to utilize the nomination facility and include a nominee on your KVP certificate

KVP certificate can be transferred from one post office to another across India 

There are no tax benefits under the scheme. The maturity proceeds of the scheme are taxable at the hands of the investor. It is exempt from TDS though.

You can use your KVP Certificate as collateral to get loans in banks