Kisan Vikas Patra Benefits: Kisan Vikas Patra (KVP) is a savings scheme introduced by the Government of India in 1988. The aim of the scheme is to provide an affordable and accessible savings option for farmers and other small investors. The scheme offers a high-interest rate, a long maturity period, simplicity, low investment requirements, and government backing, which make it an attractive savings option for small investors in India. The current interest rate for the KVP scheme is 7.6% per annum, and the maturity period is 9 years and 6 months. The minimum investment requirement is INR 1,000. Investors can purchase KVP certificates from designated post offices across the country.The aim of the scheme is to provide an affordable and accessible savings option for farmers and other small investors. Some of the key Kisan Vikas Patra benefits are as follows:
The KVP scheme offers a high-interest rate, which is currently set at 7.6% per annum. This is higher than the interest rates offered by most other savings schemes in India, making it an attractive option for small investors.
The KVP scheme has a relatively long maturity period, which is currently set at 9 years and 6 months. This allows investors to save for a longer period and earn more interest on their investments.
The KVP scheme is simple and easy to understand, making it suitable for people who do not have a lot of financial knowledge.
The KVP scheme is backed by the Government of India, which means that investors’ money is safe and secure.
Kisan Vikas Patra (KVP) is a savings scheme offered by the government of India that allows individuals to invest a fixed amount of money and earn interest on it over a specified period of time. The scheme was launched in 1988 with the aim of providing a secure and profitable investment option for small investors.
Below is an overview of KVP:
Feature
Description
Scheme
Government-backed savings scheme
Objectives
Provide a secure and profitable investment option for small investors
Investment options
KVP certificates in denominations of Rs. 1,000, Rs. 5,000, Rs. 10,000, and Rs. 50,000
Interest rate
The interest rate is revised quarterly and is currently at 6.9% per annum
Tenure
KVP certificates have a maturity period of 124 months (10 years and 4 months)
Tax benefits
KVP investments are eligible for tax benefits under Section 80C of the Income Tax Act
Encashment
KVP certificates can be encashed at any time after 2 and a half years from the date of issue
Eligibility
Below are given eligibility criteria for KVP:
Any individual, including minors, can invest in KVP.
Hindu Undivided Families (HUFs) are not eligible to invest in KVP.
Application process
Below is given application process for KVP:
Approach a post office or a designated bank to purchase KVP certificates.
Fill out the KVP application form and submit it along with the required documents, such as proof of identity and proof of address.
Pay the required amount in cash or by check/demand draft.
The post office or bank will issue the KVP certificates and provide a receipt for the same.
Kisan Vikas Patra Benefits
The Kisan Vikas Patra (KVP) scheme offers several benefits to small investors, including the following:
High-interest rate: The KVP scheme offers a high-interest rate, which is currently set at 7.6% per annum. This is higher than the interest rates offered by most other savings schemes in India, making it an attractive option for small investors.
Long maturity period: The KVP scheme has a relatively long maturity period, which is currently set at 9 years and 6 months. This allows investors to save for a longer period and earn more interest on their investments.
Simplicity: The KVP scheme is simple and easy to understand, making it suitable for people who do not have a lot of financial knowledge.
Low investment requirements: The KVP scheme has a low minimum investment requirement, which is currently set at INR 1,000. This makes it accessible to a wide range of investors, including farmers and other small investors who may not have a lot of money to invest.
Government backing: The KVP scheme is backed by the Government of India, which means that investors’ money is safe and secure.