Kisan Vikas Patra in Post Office

Kisan Vikas Patra (KVP) is a government-backed savings certificate offered through post offices in India. Kisan Vikas Patra post office account is transferable, eligible for premature encashment after a lock-in period, and the interest earned is taxable. This long-term, fixed-return investment option is popular among small investors, farmers, and those seeking a safe and secure savings instrument backed by the Government of India.

Read till the end to understand more about Kisan Vikas Patra Post Office in detail.

Features of Kisan Vikas Patra in Post Office

The table below gives the overview of the Kisan Vikas Patra Post Office scheme:

Post Office Kisan Vikas Patra Eligibility

To open a Kisan Vikas Patra Post Office scheme, you must meet the following eligibility criteria:

Individuals:

• Single adult (18 years or older)
• Joint account with up to two other adults (18 years or older)

On Behalf of Others:

• You can be a guardian for a minor
• You can be a guardian for a person of unsound mind

Note: Minors below age 10 cannot open KVP accounts in their name. However, for minors above age 10, a guardian on behalf of a minor can open a KVP account.

KVP Calculator

Kisan Vikas Patra is a saving scheme to double your money. The investment doubles in 9 years and 7 months (115 Months). Calculate the KVP maturity amount using the Kisan Vikas Patra Calculator.

Documents For Kisan Vikas Patra in Post Office

To open a Kisan Vikas Patra Post office account, you'll need to submit the following documents for KYC verification:

• Identity Proof: A copy of an Aadhaar Card, PAN card, Voter ID, Driving License, or Passport.
• KVP Application Form: Duly completed KVP application form.
• Address Proof: Any document with your current address, like a utility bill, bank statement, or passport.
• Date of Birth Proof: Birth certificate or any other document mentioning your date of birth.

Benefits of KVP Post Office Scheme

Here's why you might consider investing in the Kisan Vikas Patra (KVP) Post Office Scheme:

• Guaranteed Returns: KVP offers a fixed interest rate set by the government, ensuring a predictable return on your investment.
• Safe Investment: Backed by the Government of India, KVP is a low-risk investment option.
• Long-Term Savings Encouragement: The fixed maturity period of 115 months promotes long-term financial discipline.
• Wide Availability: You can easily purchase KVP certificates from most post offices across India.
• Loan Facility: After a lock-in period, you can avail of a loan against your KVP certificate for emergencies.
• Flexible Investment Amount: There's a minimum investment of ₹1,000 with no upper limit, allowing you to invest as per your needs.
• Nomination Facility: Appoint a beneficiary to receive the maturity amount in case of your unfortunate demise.

Transfer of Kisan Vikas Patra Post Office

KVP accounts can be transferred under specific circumstances:

• Death of Account Holder: In case of a single account holder's demise, the account can be transferred to the nominee (if appointed) or legal heirs. For a joint account, if all account holders pass away, the transfer is made to the nominees or legal heirs.
• Joint Account Holders: Upon the death of one joint account holder, the account automatically transfers to the surviving joint holder(s).
• Court Order: A court order can authorise the transfer of a KVP account from one person to another.
• Pledging the Account: When pledging the KVP account as security to a specified authority (President, Governor, RBI, Banks, etc.), the account ownership is temporarily transferred.

Check more on transferring Kisan Vikas Patra account from the linked page.

Loan Against Kisan Vikas Patra Post Office

A KVP account can be a helpful tool to get a loan by using it as security for borrowing money.

Process:

• To avail of a loan against your KVP account, you'll need to submit a prescribed application form at the concerned post office.
• The application must be accompanied by an acceptance letter from the institution lending you the money (previously referred to as the pledge).

Who can grant a loan against KVP?

• The President of India or Governor of a State
• RBI (Reserve Bank of India)
• Scheduled Banks (commercial banks)
• Co-operative Societies and Co-operative Banks
• Public or Private Corporations
• Government Companies
• Local Authorities
• Housing Finance Companies

Note:

• Using a KVP account for a loan against KVP is a temporary transfer of ownership. You regain ownership once the loan is repaid in full.
• The terms and conditions for availing a loan against KVP, including interest rates on the loan, will be determined by the lending institution.

Steps to Open in Kisan Vikas Patra Post Office Online

You cannot directly open a Kisan Vikas Patra (KVP) account online through the India Post website. The process is currently offline and requires visiting your nearest post office.

Here are the steps to open a Kisan Vikas Patra (KVP) Post Office Account:

Step 1: Go to your nearest post office branch.

Step 2: Ask for Form-A, the application form for Kisan Vikas Patra.

Step 3: Fill out your details, investment amount, preferred payment method, and certificate type (single or joint account).

Step 4: Provide copies of identity proof (Aadhaar, PAN, etc.), address proof (utility bill, etc.), and date of birth proof.

Step 5: Pay the investment amount in cash, locally executed cheque, pay order, or demand draft drawn on the Postmaster's name.

Step 6: Once documents and payment are verified, you'll receive your Kisan Vikas Patra certificate (a digital option might be available).

Premature Withdrawal / Closure of KVP Post Office Account

While KVP encourages long-term savings, there are situations where you might need to prematurely close your account. Here's a breakdown of the allowed scenarios:

• Death of Account Holder: In case of a single account holder's passing, the nominee or legal heirs can prematurely close the account. For a joint account, if all account holders pass away, the nominees or legal heirs can close the account prematurely.
• Forfeiture by Gazette Officer Pledgee: If you pledged your KVP account as security for a loan from a government official (Gazette Officer) and defaulted on the loan, the pledgee can forfeit the account, leading to premature closure.
• Court Order: A court order can authorise the premature closure of a KVP account.
• After Lock-In Period: You can choose to prematurely close your KVP account after 2 years and 6 months from the date of deposit. However, there will be a penalty on the interest earned.

Note: Premature closure except in cases of death or court order will result in reduced interest payout compared to holding the account till maturity.

Besides KVP, you can also check post office schemes and calculators