Kisan Vikas Patra is a Small Saving Instrument. This scheme was initially launched by the Government of India in 1988, which was subsequently closed for some reason. But in 2014 this scheme was launched again by making some changes. Changes were made that if you invest more than Rs. 50,000 in this scheme you will have to submit PAN Card as Proof. If you invest more than Rs. 10 lakhs in this scheme, then you have to submit Income Source Proof. The main purpose of this scheme was to invest those people who live in semi-urban and rural areas. This scheme is becoming a very popular scheme, because in this scheme, guarantors of guaranteed returns are given to the investors with Effective Interest Rate and Low Risk.
Features of Kisan Vikas Patra
- KVP certificate can be purchased from any Post Office Department.
- Nomination facility is also available.
- The certificate can be converted to Premature Cash after 2 years 6 months from the date the certificate is issued.
- Minimum 1000 rupees can be invested in this scheme and there is no limit to the maximum amount Amount to be invested. Any investor can invest in Amount such as amount as much as possible on the basis of his Purchasing Power.
- KVP certificate can also be transferred from the Post Office of a city in India to a Post Office in another city.
- The KVP certificate is transferable. You can also transfer the certificate from one person to another person. But before transferring the certificate to the New Holder, Post Office has to take Approval for this work and Original Holder has to Fulfill all the Required Formalities.
- Income tax in this scheme is taxable. That means there is no tax deduction of any kind under Income Tax on Entire Amount which is available on Maturity and no tax Deducted At Source (TDS) is charged.
- Kisan Vikas Patra, which has been issued in 2014, has maturity period of 8 years, 4 Months (100 Months). Amount doubled invested in this scheme on maturity. Let's say that you have invested 40,000 rupees in this scheme, then after 8 Years 4 Months, Invested Amount will be 80,000.
Benefits of KVP
- The KVP certificates are available in Amount from Rs 1000 to Rs 50,000.
- This is a government scheme, hence the money invested in this scheme is safer and returns are guaranteed. There is no risk of non payment as a government scheme.
- The interest rate applied to your investment at the time you started investing in this scheme will be available till the maturity period of your investment.
- This scheme is better for such a person who is looking for a scheme that is Risk Free and Return is a guarantee.
- Can submit KVP certificate as Loan Against Collateral Security and can also use this Certificate for Bank Loan.
Eligibility for KVP
If you want to invest in a KVP scheme, you have to Satisfy following Criteria.
- It is mandatory for the applicant to be resident Indian and Adult to invest in this scheme.
- An Adult Indian Resident Person can invest in this scheme for himself or on behalf of a minor person.
- Trusts are Eligible to invest in this scheme but HUF (Hindu Undivided Family) and NRI (Non Resident of Indian) person are not Eligible to invest in this scheme.
Premature Encashment of Kisan Vikas Patra
However, KVP's certificate can not be converted to Cash before the Maturity Period but if you want to close KVP certificate before Maturity Period is completed, then on the day you have purchased KVP certificate from 2 You can do this after years of 6 months complete. You will be given the Principal Amount With Interest Apart from this, if the following conditions are to be done, then the KVP certificate can be converted to Cash before the maturity period.
- If the order is made by the court, then the KVP certificate can be converted into cash before the maturity period.
- If the KVP certificate is confiscated by the gazetted officer, it can be converted to Cash before maturity period.
- In the event of a single account, on the death of KVP Certificate Holder and on account of either of the two or both of the accounts holder, the KVP certificate can be converted into cash before the maturity period.
Transfer of Kisan Vikas Patra
The KVP certificate is transferable and this transfer occurs in two ways.
- Transfer from One Post Office to Another Post Office - Transfer of Post Office from the Post Office to KVP can be transferred from any other Post Office to that post office. To transfer a KVP certificate, it is mandatory to submit an Handwritten Consent to the Post Office officer to the investor. The person who transfers the certificate should be an Indian resident and the certificate should also be Eligible to Purchase.
- Transfer from One Person to Another Person - The way KVP certificate can be transferred from one post office to another post office, in the same way, the Purchased certificate by a person transferred to another person also. can go. For this, it is compulsory to submit a Written Letter to the Post Office.
Loan Against Kisan Vikas Patra
If you want you can also take a loan in lieu of your KVP certificate. But following Conditions for taking a loan instead of KVP is mandatory.
- The person who wants to take loan should have a certificate of Kisan Vikas Patra in his name.
- If you want to take loans instead of KVP, then the loan can be taken only for Business Purpose or Personal Use, but if you want to take loan for any type of betting, then you can not take a loan against KVP.
- The loan you take instead of KVP is mandatory to repaid before the KVP's Maturity Period (which is of 8 Years 4 Months).
- Based on the investment and maturity period you have made in KVP, the Margin and Loan Amount is decided by the banks.
- Individual banks impose different interest rates and charges on the loan amounts in return for KVP. Charges keep changing over time.
Important things related to KVP
By the way all schemes have their own advantages and disadvantages. For example, if you invest in Government's Safe and Secure Scheme, the advantage is that the Return on Your Invested Amount and the Repayment of Amount is guaranteed. But the damage to you is that there is very little that rate of return given to you on the Invested Amount is very less. But this does not mean that government schemes are not better in terms of investment. Government schemes are also better but for those who have been retired or those who want to invest their money in any Risky Free Instrument, Government Schemes are better for them in terms of investment. But if people who have started earning their lives, then invest their income in some of the Mutual Funds, Equity Funds or Debt Funds, such as Risky Instrument, so that they can earn more Rate of Return on their Invested Amount by taking a little risk.