Kisan Vikas Patra: In today’s time, when the ever-increasing inflation is affecting the pockets of the common people, investors are looking for such means that are safe and also give better returns. Post Office’s Kisan Vikas Patra (Kisan Vikas Patra – KVP) scheme is one of these options, which guarantees to double your investment in the stipulated time frame.
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What is Kisan Vikas Patra?
Kisan Vikas Patra was started in the year 1988. Its main objective was to motivate the people of rural and semi-urban areas for safe and long-term investment. It is a government-backed scheme, due to which there is no risk of losing money in it.
Investment amount
Any person can start investing in this scheme with a minimum of Rs 1000. Its biggest feature is that there is no upper limit on investment. Small investors can benefit from a small amount, while big investors can get safe returns even by investing lakhs of rupees.
Interest rate and returns
At present, 7.5 percent annual interest is being given on Kisan Vikas Patra. This interest is added on a compound basis, that is, every year’s interest is added to the principal and for the new interest the next year. This is the reason that the amount invested doubles in about 115 months, i.e.,9 years 7 months. For example, if an investor invests Rs 8,000, then on maturity, he will get Rs 16,000.
Application process
To invest, the Kisan Vikas Patra form has to be filled out at the nearest post office or any authorized bank branch. In this, name, address, mobile number, investment amount, mode of payment, and nominee information have to be entered. Also, it is necessary to submit an identity card and address proof like Aadhaar, PAN card, voter ID, passport, and driving license. Cash can be deposited up to Rs 50,000, but for amounts above this, it is mandatory to use a cheque, a demand draft, or an online medium such as NEFT and RTGS. After the verification is complete, the investor is given a certificate of Kisan Vikas Patra.
Required documents
Documents related to identity and address are required to invest. If the amount is more than Rs 50,000, then a PAN card is mandatory, and income proof like a salary slip, bank statement, or income tax return has to be submitted for investments of more than Rs 10 lakh.
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How will the money grow with Kisan Vikas Patra?
Suppose a person invests Rs 5,000 in Kisan Vikas Patra. This amount grows with interest every year, and after 115 months, this amount becomes Rs 10,000. In this way, this scheme becomes a better option for those who want safe and stable returns in the long term.