Kisan Vikas Patra (KVP): With rising living costs and lower savings, many people are searching for investment options that offer steady returns over time.
One such option is Kisan Vikas Patra (KVP), a government-backed scheme available at post offices.
Under this scheme, your investment doubles in 115 months, which is 9 years and 7 months. For instance, if you invest ₹8,000, you will receive ₹16,000 when it matures.
What is Kisan Vikas Patra?
Launched in 1988, Kisan Vikas Patra was introduced to encourage long-term savings, especially in rural and semi-urban areas. It is known as one of the safest investment choices for the public.
Investment Details and Interest Rate
Minimum Investment: ₹1,000
Maximum Investment: No upper limit
Interest Rate: 7.5% per year, compounded annually
This means the interest is added to your invested amount every year and earns interest itself in the next year. However, the government can revise the interest rate every quarter.
How to Invest in Kisan Vikas Patra
Go to your nearest post office or selected bank branch.
Ask for and fill out Form A.
Provide your full name, address, and contact number.
Mention how much you want to invest, your payment method, and the nominee’s details.
Attach KYC documents.
You can pay in cash up to ₹50,000.
For amounts above ₹50,000, use cheque, demand draft, RTGS, or NEFT.
Once the documents are verified, you will receive your Kisan Vikas Patra certificate. Keep it safe until it matures.
Documents Required
Identity Proof: Aadhaar, PAN Card, Voter ID, Passport, or Driving License
Address Proof: Aadhaar, utility bill, passport, or bank passbook
Photograph: Passport-sized photo
For investments above ₹50,000: PAN card is mandatory
For investments over ₹10 lakh: Proof of income like a salary slip, bank statement, or ITR is required
How Does Kisan Vikas Patra Work?
For example, if you invest a lump sum of ₹5,000, it earns a fixed interest rate. This interest is added every year, and after 115 months, your ₹5,000 will become about ₹10,000.
Is Kisan Vikas Patra a Good Option?
Financial experts say KVP is a safe and dependable choice for long-term investments.
It not only gives fixed returns but also helps maintain financial stability and improve cash flow management over time.
