Kisan Vikas Patra-savings

Launched: 3 March 2015 (Re-Launched)

Main Objective: To provide safe and secure investment avenues to the small investors.

Kisan Vikas Patra is an investment scheme wherein the invested money will get doubled in 8 years and 4 months. However, investors would not get any tax benefit for their investment in Kisan Vikas Patra unlike in PPF. The Kisan Vikas Patra certificates would be available in the denominations of Rs 1,000, 5,000, 10,000 and 50,000 and there is no upper limit on investment in KVPs.

About Complete Scheme:

Kisan Vikas Patra Benefits

  The following are some of the benefits of investing in a Kisan Vikas Patra Scheme.

1. A KVP certificate is offered in multiple denominations that gives flexibility to the customers. The denominations vary from Rs.100 to a maximum of Rs.50,000.

2. It is a scheme offered by the Government of India and hence the investor can be sure of returns on invested amount. Under KVP, the holder will get double the principal in a short period of eight years and four months.

3. People who are looking for risk free investment option will benefit from KVP scheme. Also, it is unaffected by inflation as the interest rate remains the same.

4. There is no cap on the amount that one can invest in KVP. Depending on the purchase power, a person can buy any amount.

5. Kisan Vikas Patra certificate can be presented as collateral against loans. Investors can use the same to obtain a loan from banks.

6. Applicants also have the option to withdraw the amount prematurely in KVP. The lock in period is two years and six months.

7. Kisan Vikas Patra is transferable from one person to the other. To pass on the benefits to the new holder, the owner must fulfill all required formalities. Before transferring it to a new holder, it is important to receive an approval at the post office.

8. A KVP holder can enjoy tax benefits. The income from KVP is taxable but there is no tax deduction on entire money received at maturity, there is no tax deduction at source.

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