KVP - Kisan Vikas Patra 2025

The current interest rate under the scheme is 7.5% p.a. The maturity period has also been set at the maximum of 120 months. The principal amount can be withdrawn after this period only.

Here is an example of how interest accrues and doubles at maturity upon investment of Rs.1,000 in KVP on or after 1 April 2020 at an interest rate of 7.2%.

Kisan Vikas Patra Benefits

The following are some of the benefits of the Kisan Vikas Patra Scheme:

1. Long-Term Savings You can start investing in KVP with as little as ₹1,000. There’s no upper limit, so you can invest as much as you like. The investment doubles in 9 years and 5 months (115 months), and the maturity value is clearly mentioned on the certificate.

2. 100% Security KVP is backed by the Government of India, making it a safe and secure investment. Since the returns are fixed and declared upfront, you know exactly how much you'll get at maturity.

3. Fixed Interest Rate The interest rate is fixed (currently 7.5% p.a.), ensuring the amount you invest doubles at the end of the term. This rate remains stable throughout the tenure.

4. Collateral for Loans KVP certificates can be used as collateral to get loans from most banks and financial institutions.

5. Non-Transferable KVP is non-transferable without permission. To transfer the certificate to someone else, you need approval from the Postmaster and must follow certain formalities.

6. Tax Benefits There’s no TDS (Tax Deducted at Source) when you encash the certificate. While interest earned is taxable, KVP is exempt from Wealth Tax. The investor must declare interest income when filing income tax returns.

7. Physical Certificate KVP is issued as a physical certificate (not in demat form). It’s a simple document and cannot be traded or sold in the secondary market.

8. Fixed Lock-In Period KVP has a lock-in period of 2.5 years. After this, you can withdraw your money early in case of emergencies, but you'll get reduced interest depending on the withdrawal time.

Documents Required for Kisan Vikas Patra

To avail the benefits of Kisan Vikas Patra, you need to furnish the following documents: 

1. Form A

1. Form A1 (If the application is submitted via an agent)
2. KYC documents (Aadhaar card/Passport/PAN card/Voter ID) 

When you submit the aforementioned documents, you will receive a KVP certificate. If you lose or damage this certificate, you can request its duplicate copy. You will have to apply at the institution from where you availed of the certificate initially.

How to Obtain Kisan Vikas Patra Online

The process of investing in the Kisan Vikas Patra online scheme is simple. The steps mentioned below can be followed:

Step 1: Go to the India Post website or log in to your internet banking.

Step 2: Choose Kisan Vikas Patra (KVP) and download the KVP Form A.

Step 3: Complete the form by entering your information such as the type of certificate, the investment amount, and the payment method.

Step 4: Complete the nomination form and submit it along with the KYC documents to the bank or post office.

Step 5: After the documents are verified, deposit the funds using cash, a locally executed cheque, a pay order, or a demand draft made out to the postmaster.

Step 6: If you don't pay by demand draft, pay order or cheque, a KVP certificate will be issued to you right away. You can ask the executives to email the certificate to you.  

How to Obtain Kisan Vikas Patra Offline

The steps to get a KVP certificate offline are listed below:

Step 1: Visit the nearest post office and get Form-A which is the KVP application form.

Step 2: Fill out the form with the necessary information, then submit it.

Step 3: Fill and submit Form-A1 if you are making the investment with an agent's help.

Step 4: Submit a copy of any identity document required for the KYC process.

Step 5: Following document verification and completion of the necessary deposits, you will receive the KVP Certificate. You can also choose to obtain the KVP certificate on your registered email address.

Kisan Vikas Patra Eligibility

The following are the Kisan Vikas Patra eligibility:

1. The applicant must be an adult and a resident Indian.
2. The applicant can apply for Kisan Vikas Patra in their own name or on behalf of a minor.
3. Trusts are eligible to invest in Kisan Vikas Patra. HUFs (Hindu Undivided Family) and NRIs are not eligible to invest in KVP.

Kisan Vikas Patra Types

A Kisan Vikas Patra comes in the following types:

1. Single Holder Type Certificate: This type of KVP is issued to an adult individually for self or on behalf of a minor.
2. Joint A Type Certificate: This type of KVP is issued to 2 adults jointly and is payable to both the owners and to the survivor.
3. Joint B Type Certificate: This type of KVP is issued jointly to two adults and is payable to either  the owners or to the survivor.

KVP, when of Type A and Type B, is released to both the combined owners. In case  adulthood is due to both the heir and owners or due to either of the heirs, it is released to combined owners.

How to Transfer Kisan Vikas Patra Account?

Transer of Kisan Vikas Patra from one Post Office to the other or from one person to another.

Transfer from One Post Office to Another: A Kisan Vikas Patra certificate can be transferred from one post office, from where it was originally bought to another post office. In order to transfer a KVP certificate, the investor must submit a handwritten consent to the officer at a concerned post office. The transferee must be a resident Indian and must be eligible to purchase the KVP certificates.

Transfer from One Person to Another: A KVP certificate can also be moved from one individual to another for which a written letter must be submitted to the Post Office for the same. The following conditions/specifications apply for the same:

1. Transfer from the name of the deceased to his or her heir
2. From one owner to the combined owners
3. From combined owners to the name of one of the owners
4. From the owner to a judge of law and also to other individuals as ordered by a Court of Law

Kisan Vikas Patra Maturity Period

The maturity period for Kisan Vikas Patra  is nine years and five months. On maturity, the amount invested gets doubled. If you invest an amount of Rs.10,000, after a period of nine years and five months, the amount will increase to Rs.20,000. The current interest rate of Kisan Vikas Patra is 7.5% p.a.

Kisan Vikas Patra Form

In order to purchase a Kisan Vikas Patra certificate, one must fill in the application form and furnish the required information. The required information must be provided in the identity slip also. In the application form, you will be required to mention the following details:

1. The amount for which the KVP certificate is to be purchased.
2. The method of payment  can be either cash or cheque
3. Type of KVP certificate, whether it is single or joint "A" or joint "B"
4. The name of combined owners if the KVP type is not single
5. In the case of the minor, the date of birth of the minor and his guardian who can encash the KVP amount
6. Name of all nominees with full address and date of birth

This form must be duly signed by the investor. The date, address, and signature of the witness to a nomination will also be specified in the slip.

In the identity slip, information like the serial number of the KVP certificate, issue price, date of encashment, postmaster signature and remarks like that of duplicate issue and transfer will be mentioned. To encash the KVP, one must present the identity slip. Hence, mentioning the right details in the KVP identity slip and KVP Form is of utmost importance.

KVP Rules and Guidelines

1. Title and Start Date These are called the Kisan Vikas Patra Rules, 2014, and they came into effect the day they were published in the Official Gazette.

2. Key Definitions

1. Act: Government Savings Certificate Act, 1959
2. Cash: Indian currency
3. Certificate: KVP certificate
4. Form: Forms attached to the rules
5. Post Office: Any post office handling savings accounts
6. Identity Slip: Slip given to certificate holder
7. Bank: SBI, its associates, and approved commercial/nationalized banks

3. Certificate Denominations Available in ₹1,000, ₹5,000, ₹10,000, and ₹50,000 denominations.

4. Application Rules The same as Post Office Savings Certificate Rules, 1960. You can buy any number of certificates.

5. Types of KVP Certificates

1. Single Holder: For adults or on behalf of a minor
2. Joint ‘A’: Jointly issued, payable to both or survivor
3. Joint ‘B’: Jointly issued, payable to either or survivor

6. Certificate Issuance Issued immediately after payment. If delayed, a provisional receipt is given until the actual certificate is handed over.

7. How to Buy Submit an application at the Post Office. Pay via cash, cheque, demand draft, or withdrawal form.

8. Transfer of Certificate Allowed in these cases:

1. To legal heir on death
2. From single to joint holder
3. By court order Apply in writing to the Postmaster.

9. Pledging as Security Certificates can be pledged to:

1. The President/Governor
2. RBI, Scheduled Bank, Co-operative Society
3. Government agency or Housing Finance Company (Not allowed if held by a minor.)

10. Nomination The buyer or joint holders can nominate someone to receive the amount in case of their death.

11. Post Maturity Interest If not withdrawn after maturity, simple interest (like a savings account) is given:

1. Less than a month is ignored
2. Paid in lump sum with the maturity amount

12. Lost or Damaged Certificates Apply for a duplicate with details (certificate number, amount, date, and reason for loss/damage). It’s valid but needs verification before encashment.

13. Where to Encash At the issuing post office/bank or any other, with proper verification.

14. Maturity Encashment On maturity, the invested amount doubles based on the interest rate applicable at the time of issue.

15. Premature Encashment Allowed after 2.5 years in these cases:

1. Death of holder(s)
2. Court order
3. Forfeiture by pledge (Gazetted Officer) Interest is paid as per applicable rules.

16. Certificate Discharge At maturity, the holder signs the back of the certificate to confirm payment received.

17. Correction of Errors Clerical or calculation errors can be corrected by the Postmaster General if there’s no financial loss to the government.

18. Relaxation of Rules In special cases of hardship, rules can be relaxed on humanitarian grounds with written approval from the Central Government.

Kisan Vikas Patra Nomination

Certificate holders can make nominations at the time of purchase by completing Form C singly and jointly. In the event of the death of the sole holder/joint holder, the benefits will be provided to the nominee. If you did not make a nomination at the time of purchase, you could do it after purchasing the certificate but before its maturity. A duly filled Form C has to be submitted to the person who registered the certificate at the post office or bank. 

Loan Against KVP

A holder of Kisan Vikas Patra can avail of a loan against the same. The following are the conditions for availing of a loan against KVP:

1. The loan applicant must have a Kisan Vikas Patra under his own name.
2. The loan against KVP can be availed for business or personal purposes only. The loan cannot be availed for any speculative ones.
3. Different banks have different charges and interest rates for loans against KVP. The charges vary from time to time and select banks may charge a processing fee for a  loan grant.
4. The loan should be repaid within the tenure of Kisan Vikas Patra.
5. The margin and loan amount will be decided by the bank based on the KVP investment and maturity.