Who can/should invest in the KVP scheme

⇒ Any Indian citizen above age 18. NRIs can not avail of this scheme.

⇒ A parent/ guardian for a minor

⇒ Jointly with another adult

⇒ A Trust but not a HUF

KVP is a good choice if you are a risk-averse individual or have surplus money that you may not need in the near future. The decision of whether you should take a KVP depends on your risk profile and money goals. For instance, if tax-saving is your current goal, schemes like Public Provident Fund, National Saving Certificates, and bank FD Schemes can be a better option for you.

Related Article: Sukanya Samriddhi Yojana : Changes and Benefits

Features & Benefits of Kisan Vikas Patra

Guaranteed Return

Market fluctuations do not influence the returns of this scheme. You will surely get the sum you are aiming for. Since this scheme was initially started for farmers, the primary objective was to ensure that they save for their grey days without being scared of risks of losing the money they already have.

Affordability

Since the KVP is available in denominations as small as  ₹100 and a minimum investment fo just ₹1000, anyone can apply for this scheme without having to move their budget much. This makes it easy to afford for people who have little money on their hands and still want to save for their secure future.

Facility To Get Loan against KVP

Your KVP certificate can also be used as collateral to avail secured loans from financial institutions. The benefit of doing so is that the interest rate reduces considerably when compared against unsecured loans.

How Can I Invest In  Kisan Vikas Patra & The Documents Needed

It is fairly simple to invest in the Kisan Vikas Patra. You can follow the below steps-

⇒ Fill the application form (Form-A) [Available online] and submit it duly filled to the Post Office.

⇒ If your investment in KVP is via an agent, then the agent needs to fill Form-A1.

⇒ Complete the Know Your Customer (KYC) process since it is mandatory wherein you need to show proof of identity and submit a copy (e.g. PAN, Aadhaar Card, Voter ID, Driving License or Passport)

⇒ After verification and deposit, you will be issued a KVP certificate.

⇒ You need to keep this certificate safe since you will have to submit this when the scheme matures. You can send a request for sending you the certificate by email as well.

Overall, the Kisan Vikas Patra is undoubtedly a worthy investment if it matches your money goals. And if it does, you should invest immediately. If you have any questions regarding the Kisan Vikas Patra or personal finance in general, let us know in the comment section below. Until next time!

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