The Kisan Vikas Patra (KVP) scheme is an important and flagship savings scheme of the Government of India. Originally launched for farmers, it is now available to all citizens of the country. This scheme is considered the most reliable for long-term investments. The most important feature of KVP is that it guarantees investors to double their deposits in approximately 115 months (i.e., 9 years and 7 months).
Interest Rate and Investment Limit
This scheme currently offers an interest rate of 7.5%, which is revised quarterly by the government. You can start investing with a minimum of ₹1,000, and there is no maximum investment limit, making it suitable for both small and large investors.
Premature Withdrawal Terms and Conditions
Although the Kisan Vikas Patra scheme has a fixed investment period of 115 months, premature withdrawal is also available for emergency needs, but this comes with some strict rules and penalties. This scheme has a lock-in period of 30 months (2.5 years) after investment. You cannot withdraw funds during this period.
Withdrawals after 30 months will return the entire principal amount plus interest without any penalty. Conversely, if you withdraw before 1 year, you will receive only the invested amount, no interest, and a penalty.
If withdrawals are made between 1 year and 30 months, you will receive a reduced interest rate of 7.5%, plus a penalty. Investors are advised to withdraw only after completing the 30-month lock-in period to maximize profits and avoid any penalties or interest deductions.
Other Features of KVP
The Kisan Vikas Patra Scheme is a safe investment option for those who want to keep their money safe for the long term and are looking for assured returns. There is no maximum investment limit in this scheme, making it ideal for investors of all categories. The scheme also offers a nomination facility, which means that in the unfortunate event of the investor’s death, the deposit amount is easily transferred to the nominee.
Investors can obtain it in the form of certificates from post offices and selected public sector banks, which ensures security. The Kisan Vikas Patra Scheme is a reliable and secure government scheme that encourages savings and provides financial security to individuals, proving to be extremely useful for long-term investors.