Kisan Vikas Patra (KVP) – All You Need To Know

Launched in 1988 by India Post, Kisan Vikas Patra is a savings certificate scheme to encourage small savings for securing the people’s future. As the name suggests it was designed to assist farmers who lacked access to traditional banking systems but there is no distinction made between investors.

What Is Kisan Vikas Patra?

An initiative by the Indian Government, Kisan Vikas Patra is a small savings instrument that facilitates people to invest in a long-term savings plan. In 2014 the Kisan Vikas Patra scheme was reinstated in order to resurrect little savings by the people.

Main Features of Kisan Vikas Patra

A Kisan Vikas Patra certificate is issued by any branches of Bank of Baroda across India.

A minimum of one thousand rupees and any sum in multiples of one hundred rupees may be deposited in an account. There shall be no maximum limit for deposit in an account or in accounts held by an account holder. An individual may open any number of accounts. Investments in Kisan Vikas Patra scheme are not subject to a maximum amount.
An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme (Under certain circumstances ) When a Kisan Vikas Patra certificate is acquired on behalf of minors, such a certificate cannot be transferred to another person while the minor is still alive.

Types of the Kisan Vikas Patra

• A Single Holder Type Account may be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years.
• Joint A-Type Account may be opened jointly in the names of upto three adults payable to all the account holders jointly or to the survivors.
• Joint B-Type Account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors.

Eligibility Criteria for Kisan Vikas Patra

• Kisan Vikas Patra can be purchased by any Indian resident, and on behalf of minors.
• The scheme has no maximum age requirement.
• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are ineligible to avail the Kisan Vikas Patra scheme.

Kisan Vikas Patra Interest Rate

The current interest rate on Kisan Vikas Patra is 6.9% which is compounded annually.

Maturity Period of the Kisan Vikas Patra

• The maturity period of Kisan Vikas Patra is 10 years and 4 months, or 124 months and the investment is doubled in 124 months.
• Before encashing your KVP certificate you must know the Kisan Vikas Patra withdrawal rules:
• The maturity period of Kisan Vikas Patra is 10 years and 4 months or 124 months. Only after then it can be fully withdrawn.
• A Premature encashment is allowed after 30 months.
• The KVP certificate can be prematurely encashed before 30 months only if ordered by a court of law, on forfeiture by a pledge or by a Gazetted Officer, or upon the death of the KVP holder or any or all of the holders in the case of joint KVPs.

Steps to invest in Kisan Vikas Patra and documents required

• Fill the duly filled form available at branch or at site and submit with the necessary deposit.
• Documents required for Kisan Vikas Patra - Aadhaar Card, Driving License, Passport, Voter ID as identity & address proofs.
• Once the documents are verified, your KVP Certificate will be issued.

Loan against Kisan Vikas Patra

A Kisan Vikas Patra holder can avail a loan against the same in following conditions:

• The loan applicant must have a Kisan Vikas Patra under his/ her own name.
• The loan can only be availed for business or personal purposes.
• The loan and different charges and interest rates will be decided by the bank based on the KVP investment and maturity.

Summary

Kisan Vikas Patra is a fixed rate savings scheme offered by all Branches of Bank of Baroda in the form of certificates that is designed to double your invested money once your maturity period of 124 months (10 years and 4 months) has passed. The current interest rate for KVP is 6.90% which is compounded annually. A KVP certificate can be purchased by an adult, minor (above 10 years of age) individually or as jointly.